Central States, Southeast and Southwest Areas Pension Plan

Item #2 

Does the application include a description of the proposed benefit suspension – calculated as if no 

other limitations apply – that includes: 

• the suspension’s effective date (and its expiration date, if applicable),

• a description of the different categories or groups of individuals affected, and

• how the suspension affects these individuals differently.

See section 2.02. 

A description of the proposed benefit suspension is attached as document number 2.1. Document 

number 2.2 illustrates the various categories, shows the suspension provisions that apply to each, 

and contains a detailed calculation example for a participant in each category.

2.0
2.02 Terms of proposed benefit suspension.

Overview of Benefit Suspensions

The Board of Trustees proposes the following reduction of benefits, which will become effective 

on July 1, 2016 and will remain in effect indefinitely. 

Generally, the amount of a participant’s suspension is based upon three main factors. First, the 

“tier” (or tiers) to which a participant’s benefits are attributable. Second, the amount of 

contributions made to the Plan on a participant’s behalf. Third, whether the participant is an 

active participant, a terminated participant, or a retiree as of July 1, 2016. 

Additionally, as described below, participants with at least 20 years of Contributory Service 

Credit (and their beneficiaries in pay status) as of July 1, 2016, will receive lesser suspensions 

than other participants. Also, the suspensions are affected by both the age of the participant upon 

retirement and whether the participant elected a joint and survivor form of benefit upon 

retirement.

Contribution Tiers

Federal law establishes three “tiers” of benefits under the Plan, and establishes different

conditions for the reductions that are applied to the benefits attributable to each tier. The tiers are 

defined as follows: 

• Tier 1 consists of benefits attributable to contributions made by an employer that

withdrew from the Plan on or before July 1, 2016, but failed to pay (or is delinquent with

respect to paying) the full amount of its withdrawal liability under law or an agreement

with the Plan.

• Tier 2 consists of all benefits attributable to contributions not assigned to Tier 1 or Tier

3.

• Tier 3 consists of benefits attributable to contributions made by an employer that (a) has

withdrawn from the Plan in a complete withdrawal in which the employer paid the full

amount of the employer’s withdrawal liability under law or an agreement with the Plan,

and also (b) pursuant to a collective bargaining agreement, has agreed to provide benefits

to participants and beneficiaries of the Plan under a separate, single-employer-sponsored

plan, in an amount equal to any reduction in the amount of benefits for such participants

and beneficiaries as a result of the financial status of the Plan.

The only benefits assigned to Tier 3 as of the date of this notice are those attributable to

contributions made by United Parcel Service, Inc. and its controlled group (“UPS”) for

participants that are part of the Transfer Group under an agreement between UPS and the

Plan dated September 29, 2007 (generally those participants who were active participants

with UPS or whose last employer prior to becoming terminated vested was UPS as of that

2.1.1
date). Participants who retired prior to that date are not part of Tier 3, even if they worked 

for UPS because the pension benefits of those participants are not protected by UPS.

Federal law requires that benefits attributable to Tier 1 be reduced to the maximum extent 

permissible. Therefore the determination of the suspension amounts for benefits attributable to 

Tier 1 contributions does not include any formula developed by the Board of Trustees, but 

instead is generally equal to 110% of the benefit amount guaranteed by PBGC. 

Benefits that are attributable to Tier 2 or Tier 3 contributions (determined based on the 

participant’s percentage of their total contributions that was from Tier 2 and Tier 3, respectively) 

generally will be reduced in accordance with the structure outlined below under General Benefit 

Reduction Provisions. 

For benefits attributable to Tier 2 contributions, the benefit reduction to participants with at least 

20 years of Contributory Service Credit as of July 1, 2016 will not be greater than 50% of the 

amount that would otherwise have been payable with respect to such contributions before this 

reduction. 

For benefits attributable to Tier 3 contributions, the benefit reduction to participants with at least 

20 years of Contributory Service Credit as of July 1, 2016 will not be greater than 40% of the 

amount that would otherwise have been payable with respect to such contributions before this 

reduction. 

General Benefit Reduction Provisions (Tier 2 and Tier 3 Contributions Only)

The following general benefit reduction provisions apply only to benefits attributable to Tier 2 or 

Tier 3 contributions. 

• Except as provided below, under the benefit reductions that the Trustees have proposed, a

plan amendment will take effect on July 1, 2016 that will reduce participants’ monthly

pension benefits to 1% of the Tier 2 and Tier 3 contributions that have been made on

their behalf as of that date, adjusted for any early retirement and JSO benefit adjustments

as described below.

o For example, if a participant has a plan benefit of $1,000 per month on July 1,

2016, and 1% of the total contributions made on that participant’s behalf is $800,

then the $1,000 benefit will be reduced by $200 to $800 effective July 1, 2016.

• For terminated participants with less than 20 years of Contributory Service Credit who do

not have a Benefit Commencement Date on or before October 1, 2015, benefits as of July

1, 2016 will be 0.5% of the total Tier 2 and Tier 3 contributions made on their behalf and

adjusted for any early retirement and JSO as described below.

o A participant will be in “terminated” status for purposes of the suspension plan if,

as of July 1, 2016, any of the following is true:

2.1.2
 The participant (a) has a Year of Employment under the Plan during any

year ending on or before December 31, 2014, and (b) earned no

Contributory Service Credit during 2014;

 The participant (a) has a Year of Employment under the Plan during any

year ending on or before December 31, 2015, and (b) earned no

Contributory Service Credit during 2015; or

 The participant (a) has earned or earns an Hour of Service while employed

with a Contributing Employer (or any predecessor or successor entity) that

at any time on or after October 1, 2015 incurs a Rehabilitation Plan

Withdrawal, and (b) has either (i) earned the last year of Contributory

Service Credit on or before October 1, 2015 while a member of a

Bargaining Unit (or any predecessor or successor Bargaining Unit)

ultimately incurring such Rehabilitation Plan Withdrawal or (ii) earned the

last year of Contributory Service Credit on or before July 1, 2016 while a

member of a Bargaining Unit (or any predecessor or successor Bargaining

Unit) ultimately incurring such Rehabilitation Plan Withdrawal. This

provision shall not apply to Rehabilitation Plan Withdrawals occurring

after July 1, 2016 unless the Bargaining Unit, on or before July 1, 2016,

ratifies or otherwise agrees to a Collective Bargaining Agreement (or other

agreement) which permits the withdrawal of the Bargaining Unit in whole

or in part from the Plan (regardless of when the withdrawal in fact occurs).

• As already provided under the Plan, benefits are reduced for each month that the age of

retirement precedes age 65. As applied here, in the event that a participant retired with

less than 20 years of Service Credit at retirement, the 1% (or 0.5% as the case may be) of

total contribution monthly benefit will be reduced by 0.5% for each month that the age of

the participant at retirement precedes age 65. This reduction applies down to age 57, with

participants who retired prior to age 57 treated as having retired at age 57 for this

purpose.

o For example, a participant who retired at exactly age 57 or earlier would have the

1% of contributions benefit reduced by 48% (0.5% x 96 months). If 1% of the

contributions made on that participant’s behalf is $1,000, the monthly benefit will

be reduced to $520 (reducing $1,000 by 48%).

• As already provided under the Plan, benefits are reduced for each month that the age of

retirement precedes age 62 if the participant had at least 20 years of Service Credit at

retirement. As applied here, if a participant had at least 20 years of Service Credit at

retirement, the 0.5% per month reduction applies to the 1% of total contributions

monthly benefit for each month that the age at retirement precedes age 62 instead of age 

65.

o For example, a participant with 20 or more years of Service Credit who retired at

exactly age 57 or earlier would have the 1% of contributions benefit reduced by

30% (0.5% x 60 months). If 1% of the contributions made on that participant’s

2.1.3
behalf is $1,000 per month, the monthly benefit will be reduced to $700 (reducing 

$1,000 by 30%). 

• Under the terms of the Plan’s Rehabilitation Plan, a participant subject to an adjustable

benefit reduction will have the 1% (or 0.5% as the case may be) of contributions benefit

reduced by the percentage listed in the Rehabilitation Plan.

• In addition to any reduction for early retirement, the 1% or 0.5% of contributions

monthly benefit will also be adjusted to reflect any adjustment factors for election of a 

JSO in accordance with the terms of the Plan in effect on October 1, 2015.

Restricted Reemployment Changes

The following changes are effective July 1, 2016, apply only to those participants whose benefits 

are, in fact, reduced under this application (not including reductions to future benefit accruals), 

and are contingent upon approval of the application as provided under MPRA. In all other 

circumstances, the existing (pre-MPRA suspension) restricted reemployment rules in the Plan 

continue to apply. 

For a participant with a Benefit Commencement Date on or before October 1, 2015, the 

participant shall not be subject to any restricted reemployment rules effective July 1, 2016 

provided that prior to October 1, 2015 the participant has surrendered and severed any and all 

aspects of the employment relationship, including any seniority rights, with any Contributing 

Employers.

For a participant whose Benefit Commencement Date is after October 1, 2015 and who is at least 

62 but less than 65 on the Benefit Commencement Date, and is performing Covered Service 

immediately prior to the Benefit Commencement Date, the participant must avoid reemployment 

in a Core Teamster Industry (as defined in the Plan), and with any Contributing Employer for 

whom the participant worked during the one year period immediately prior to his retirement and, 

prior to retirement, must have surrendered and severed all aspects of the employment 

relationship, including any seniority rights, with any such Contributing Employers. Once such 

participant turns 65, the rules in the next paragraph apply. 

For a participant whose Benefit Commencement Date is after October 1, 2015 who has reached 

age 65 (regardless of age at time of retirement), the participant shall not be subject to any

restricted reemployment rules as long as the participant has previously surrendered and severed 

all aspects of the employment relationship, including any seniority rights, with any Contributing 

Employers. The only exception is that a participant whose last year of Contributory Service 

Credit was earned while employed by a labor organization, or other Contributing Employer with 

whom the participant did not have seniority rights under a collective bargaining agreement, will 

not be eligible for this “No Restrictions” rule unless the participant has first spent one continuous 

post-retirement year without any restricted reemployment under the existing (pre-MPRA 

suspension) restricted reemployment rules.

2.1.4
Reduction of Early Retirement Subsidies for Contribution-Based Pension

Currently, the Contribution-Based Pension (section 4.02 of the Plan) is reduced by 0.5% for each 

month the age of the participant on his retirement date is less than 62 if the participant has at 

least 20 years of Service Credit (the reduction occurs from age 65 if the participant has less than 

20 years of Service Credit). However, if the participant is subject to the Default Schedule, 

Rehabilitation Plan Withdrawal, or Distressed Employer Schedule, the Contribution-Based 

Pension payable at age 65 is reduced to an actuarially equivalent benefit in accordance with the 

terms of the Plan.

Effective July 1, 2021 (five years from the effective date of the reductions), the ContributionBased Pension (section 4.02 of the Plan) will be reduced by 0.5% for each month the age of the 

participant on his retirement date is less than 63 if the participant has at least 20 years of Service 

Credit (the reduction occurs from age 65 if the participant has less than 20 years of Service 

Credit).

Effective July 1, 2023, the Contribution-Based Pension (section 4.02 of the Plan) will be reduced 

by 0.5% for each month the age of the participant on his retirement date is less than 64 if the 

participant has at least 20 years of Service Credit (the reduction occurs from age 65 if the 

participant has less than 20 years of Service Credit). 

Effective July 1, 2025, the Contribution-Based Pension (section 4.02 of the Plan) will be reduced 

by 0.5% for each month the age of the participant on his retirement date is less than 65 for all 

participants regardless of whether the participant has at least 20 years of Service Credit.

Thus, for example, if a participant who has at least 20 years of Service Credit retires on or after 

July 1, 2021 (and before July 1, 2023) at age 62, the participant’s benefit would be reduced by 

6% (12 months x 0.5% per month) as compared to currently when there would be no reduction. 

If a participant retires on or after July 1, 2023 (and before July 1, 2025) at age 62, the 

participant’s benefit would be reduced by 12% (24 months x 0.5% per month) as compared to 

currently when there would be no reduction. If a participant retires on or after July 1, 2025 at age 

62, the participant’s benefit would be reduced by 18% (36 months x 0.5% per month) as 

compared to currently when there would be no reduction. 

Regardless of these changes, if a participant is subject to the Default Schedule, Rehabilitation 

Plan Withdrawal, or Distressed Employer Schedule as defined in the Rehabilitation Plan, the 

participant’s benefit will be reduced based on age using the actuarial equivalence table in the 

Rehabilitation Plan.

Reduction of Future Benefit Accrual Rate

At present, the Accrued Benefit of a participant who is eligible for a Contribution-Based Pension 

includes 1% of all contributions made on the participant’s behalf on and after January 1, 2004. 

Effective for contributions attributable to a participant’s service on and after July 1, 2016, the 

Accrued Benefit will be 0.75% of all contributions made on the participant’s behalf. 

2.1.5
Thus, for example, if a participant had $10,000 in contributions made on his behalf prior to July 

1, 2016, the monthly Accrued Benefit increased by $100 ($10,000 x 1%). If $10,000 in 

contributions are made on the participant’s behalf on and after July 1, 2016, the monthly 

Accrued Benefit would increase by $75 ($10,000 x 0.75%). 

Contribution Increases

The suspension plan reflects increases in the maximum contribution rates of $342 or $348 per 

week currently required under the Rehabilitation Plan. The increases to the maximum required 

rate begin on August 1, 2018 with a rate increase of 2.5% per year becoming 3.0% per year in 

2028 and thereafter. Also, the suspension plan reflects an increase in the contribution rate for 

YRC beginning on August 1, 2019 of 2.5% per year becoming 3.0% per year in 2028 and 

thereafter.

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

Differently

As discussed above, the formula that determines the amount of benefit suspension varies based 

on 3 criteria:

• Whether the participant is (a) an active employee, retiree, or beneficiary in payment 

status, or (b) a terminated vested participant.

• Whether the participant’s benefit is attributable to contributions from Tier 1, Tier 2, or 

Tier 3, as defined in section 432(e)(9)(D)(vii). 

• Whether the participant’s years of Contributory Service Credit is at least 20, or is less 

than 20. 

Depending on the category in which an individual resides, the amount of benefit suspension may 

be based on 110% of the PBGC guarantee formula, 1.0% of contributions received on the 

individual’s behalf, or 0.5% of contributions received on the individual’s behalf. In addition, 

depending on the category, there may be no cap on the maximum amount of suspension that can 

apply, a cap of 50% of the pre-suspension benefit, or a cap of 40% of the pre-suspension benefit. 

Document number 2.2 illustrates the various categories, shows the suspension formula 

provisions that apply to each, and contains a detailed calculation example for a participant in 

each category.

2.1.6

llustration 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

2.2.2
llustration 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 ). 

2.2.3
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. Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd ) $0.00

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

6.

7.

8.

9.

EXAMPLE 1 

4.

5.

12.675

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

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

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

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

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

(k )

Participant Age 

at Retirement

64 years;

2 months

(j )

 Tier 3 

Suspension Cap

$1,133.12

(i )

Tier 2 

Suspension Cap

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 )

40%

(m )

Spouse Age at 

Retirement

56 years

(n )

Form of Payment

Joint And 50% 

Surviving Spouse

LANE 6 LANE 7

(g )

 PBGC Years 

of Service

50%

LANE 2 LANE 3 LANE 4 LANE 5

(l )

Early Retirement 

Factor

0.95

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 )

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 )

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

(h )

Contribution 

Accrual Rate

1.0%

LANE 1

 (a )

Monthly

Benefit 

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

2.2.4
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 12.675 0.8591 1 60 $0.00

(k )

Participant Age 

at Retirement

64 years;

2 months

(j )

 Tier 3 

Suspension Cap

$1,133.12

(i )

Tier 2 

Suspension Cap

40%

(m )

Spouse Age at 

Retirement

56 years

(n )

Form of Payment

Joint And 50% 

Surviving Spouse

LANE 6 LANE 7

(g )

 PBGC Years 

of Service

50%

LANE 2 LANE 3 LANE 4 LANE 5

(l )

Early Retirement 

Factor

0.95

(h )

Contribution 

Accrual Rate

1.0%

LANE 1

 (a )

Monthly

Benefit 

(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

No

No

No

No

No

12.

11.

EXAMPLE 1 (continued)

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(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))?

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(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?

The benefit suspension of the 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. 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 participant s monthly benefit is proposed to be reduced to $498.44 (Sum of Tier Benefits - 

ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 13 for complete calculation. 

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 )

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

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

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

2.2.5
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

$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

EXAMPLE 2 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

$3,000.00 30.971 1.0% 50% 40% 57 years;

3 months 0.715 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

2.2.6
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

$99,899.80 $99,899.80 $0.00 $0.00 30 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

$3,000.00 30.971 1.0% 50% 40% 57 years;

3 months 0.715 N/A LifetimeOnly

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. $1,217.93

No

No

No

No

No

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 )

The benefit suspension of the 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. 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 participant s monthly benefit is proposed to be reduced to $1,217.93 (Sum of Tier 

Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 16 for complete calculation. 

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 2 (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)?

2.2.7
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

$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 3 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

2.2.8
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

$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

No

No

No

No

No

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 )

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. 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 is proposed to be reduced to $569.38 (Sum of Tier Benefits - 

ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 19 for complete calculation. 

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 3 (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)?

2.2.9
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

$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 4 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

2.2.10
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

$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

No

No

No

No

No

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 )

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. 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 is proposed to be reduced to $845.60 (Sum of Tier Benefits - 

ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 22 for complete calculation. 

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 4 (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)?

2.2.11
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

$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 5 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

2.2.12
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

$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

No

No

No

No

No

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 )

EXAMPLE 5 (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 )

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 ). As a result, the participant s monthly benefit is proposed to be reduced to $1,467.52 (Sum of Tier Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 25 for complete calculation. 

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))?

2.2.13
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

$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 5A 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

2.2.14
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

$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

No

No

No

No

No

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 )

EXAMPLE 5A (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 )

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 ). 

As a result, the participant s monthly benefit is proposed to be reduced to $1,015.76 (Sum of Tier Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 25A for complete calculation. 

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))?

*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 5 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.

2.2.15
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

$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

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%

53 years;

1 month 0.7 54 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

$850.35 30.493 1.0% 50% 40%

EXAMPLE 6 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

2.2.16
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

$39,638.00 $0.00 $39,638.00 $0.00 30 0.9417 0.5 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

53 years;

1 month 0.7 54 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

$850.35 30.493 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. $425.18

No

No

No

No

No

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 .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 ). As a 

result, the beneficiary s monthly benefit is proposed to be reduced to $425.18 (Sum of Tier Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 28 for complete calculation. 

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 )

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 )

EXAMPLE 6 (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))?

2.2.17
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

$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

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

$475.42 6.3 0.5% 50% 40%

EXAMPLE 7 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

2.2.18
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

$23,771.00 $0.00 $23,771.00 $0.00 6 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

$475.42 6.3 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. $118.86

No

No

No

No

No

The terminated vested participant s earned 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 ). As a result, the participant s monthly benefit is proposed to be reduced to $118.86 (Sum of Tier 

Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 31 for complete calculation. 

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 )

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 )

EXAMPLE 7 (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))?

2.2.19
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

$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

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

$241.80 23.943 1.0% 50% 40%

EXAMPLE 8 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

2.2.20
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

$11,163.00 $0.00 $11,163.00 $0.00 23.5 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

$241.80 23.943 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. $120.90

No

No

No

No

No

The terminated vested 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 ). As a result, the participant s monthly benefit is proposed to be reduced to $120.90 (Sum of Tier Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 34 for complete calculation. 

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 )

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 )

EXAMPLE 8 (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))?

2.2.21
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

$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

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 64 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

$1,050.58 15.225 1.0% 50% 40%

EXAMPLE 9 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

2.2.22
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

$67,514.00 $0.00 $0.00 $67,514.00 14.75 0.8821 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 64 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

$1,050.58 15.225 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

$595.54

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $595.54

(ii )

Sum of Tier 

Benefits

14. $595.54

No

No

No

No

No

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 ). 

As a result, the participant s monthly benefit is proposed to be reduced to $595.54 (Sum of Tier Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 37 for complete calculation. 

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 )

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 )

EXAMPLE 9 (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))?

2.2.23
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

$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

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

$1,215.88 20.375 1.0% 50% 40%

EXAMPLE 10 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

2.2.24
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

$69,506.00 $0.00 $0.00 $69,506.00 20 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

$1,215.88 20.375 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

$695.06

(gg )

Tier 3 

Minimum

$729.53

(hh )

Tier 3 Benefit

13. $729.53

(ii )

Sum of Tier 

Benefits

14. $729.53

No

No

No

No

No

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 )

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 ). As a result, the retiree s monthly benefit is proposed to be reduced to $729.53 (Sum of Tier Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 40 for complete calculation. 

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 )

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))?

2.2.25
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

$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

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

$1,483.44 11.2 0.5% 50% 40%

EXAMPLE 11 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

2.2.26
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

$74,212.00 $0.00 $0.00 $74,212.00 11 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

$1,483.44 11.2 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

$371.06

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $371.06

(ii )

Sum of Tier 

Benefits

14. $371.06

No

No

No

No

No

The terminated vested participant s earned monthly benefit of $1,483.44 (Monthly Benefit - a ) is proposed to be suspended to .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 ). As a result, the participant s monthly benefit is proposed to be reduced to 

$371.06 (Sum of Tier Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 43 for complete calculation. 

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 )

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 )

EXAMPLE 11 (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))?

2.2.27
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

$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

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

$1,759.14 28.5 1.0% 50% 40%

EXAMPLE 12 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

2.2.28
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

$105,272.00 $0.00 $0.00 $105,272.00 28.5 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

$1,759.14 28.5 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

$1,052.72

(gg )

Tier 3 

Minimum

$1,055.48

(hh )

Tier 3 Benefit

13. $1,055.48

(ii )

Sum of Tier 

Benefits

14. $1,055.48

No

No

No

No

No

The terminated vested participant s earned 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 ). As a result, the participant s monthly benefit is proposed to be reduced to 

$1,055.48 (Sum of Tier Benefits - ii ).

Note: This example is calculated as if the limitations of § 432(e)(9)(D)(i), (ii) and (iii) do not apply. See Example 46 for complete calculation. 

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 )

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 )

EXAMPLE 12 (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))?

2.2.29