Exhibit 4: Page 1 of 11

WESTERN STATES OFFICE AND 

PROFESSIONAL EMPLOYEES PENSION FUND

THIRD SUSPENSION APPLICATION

Exhibit 4
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 2 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

As required by Section 4.01 of Revenue Procedure 2017-43, the following examples are provided to 

illustrate how the proposed suspension effective October 1, 2018 satisfies the limitations on suspension. 

The proposed suspension does not affect a participant or beneficiary who is: (1) currently receiving less 

than 110% of the PBGC guarantee, (2) over age 80 as of the effective date, or (3) disabled under the 

Plan. 

Examples #1 through #3 illustrate the guarantee-based limitation under IRC §432(e)(9)(D)(i), Examples

#4 through #6 illustrate the disability-based limitation under IRC §432(e)(9)(D)(iii), and Examples #7 

through #9 illustrate the age-based limitation under IRC §432(e)(9)(D)(ii).

The Plan defines disability as the complete and continuous inability, resulting from sickness or injury, to 

engage in any and every gainful occupation for which a participant is reasonably qualified if such 

condition is expected to continue for a long and indefinite period. Prior to January 1, 2010, to be eligible 

for a disability benefit a participant must have worked at least 200 hours during the 12 months prior to 

disability and have at least five years of vesting credit. The monthly disability benefit was equal to the 

participant’s unreduced Total Service Benefit and was only paid until age 62, at which time the participant 

would become eligible for a Normal Retirement Benefit. The Plan also had an Alternate Disability Benefit 

for participants who did not work at least 200 hours in the 12 months prior to disability and were not yet 

age 55. This benefit was equal to a reduced Total Service Benefit and was paid until the participant 

recovered from disability or died. 

The original Rehabilitation Plan eliminated the Alternate Disability Benefit and significantly reduced the 

Disability Benefit effective January 1, 2010. To be eligible for a disability benefit under the new rules a 

participant must work at least 200 hours during the 12 months prior to disability, become disabled prior to 

age 55 and have at least five years of vesting credit. The monthly disability benefit is equal to 50% of the 

participant’s Total Service Benefit and is only paid until age 55, at which time the participant may apply for 

an Early Retirement Benefit.
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 3 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #1: Proposed benefit cut for pensioner, 110% PBGC limit applies

A. Date of Birth

B. Date of Retirement

C. Effective Date of Suspension

D. Age at Retirement Date

E. Age at End of Month Containing Suspension Date

F. Monthly Benefit in Pay Status

G. Credited Service

H. Participant Status & Form of Benefit

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $33) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit 

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Final Reduction Percentage

V. Final Amount Cut

W. Final Benefit, reflecting proposed suspension and limits

9/28/1955

11/1/2010

10/1/2018

 55 years 1 month 

63 years 1 month

$600.00

11

Retiree, 50% J&S

$54.55

$35.75

$393.25

$432.58

$167.42

30%

$180.00

$420.00

$167.42

No

No

Yes

27.9%

$167.42

$432.58
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 4 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #2: Proposed benefit cut for contingent beneficiary of pensioner, 110% PBGC limit 

applies

A. Date of Birth

B. Retiree’s Date of Retirement

C. Effective Date of Suspension

D. Age at Retiree’s Retirement Date

E. Retiree’s Age at End of Month Containing Suspension Date

F. Survivor’s Monthly Benefit

G. Retiree’s Credited Service

H. Participant Status

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $14) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit 

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Final Reduction Percentage

V. Final Amount Cut 

W. Final Benefit, reflecting proposed suspension and limits

4/1/1961

11/1/2010

10/1/2018

 49 years 7 months 

63 years 1 month

$300.00

11

Beneficiary

$27.27

$23.20

$255.20

$280.72

$19.28

30%

$90.00

$210.00

$19.28

No

No

Yes

6.4%

$19.28

$280.72
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 5 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #3: Proposed benefit cut for future retiree, 110% PBGC limit applies

A. Date of Birth

B. Date of Retirement

C. Effective Date of Suspension

D. Age at Retirement Date

E. Age at End of Month Containing Suspension Date

F. Accrued Monthly Benefit

G. Credited Service

H. Participant Status

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $14) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit 

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Final Reduction Percentage

V. Final Amount Cut 

W. Final Benefit, reflecting proposed suspension and limits

9/4/1953

N/A

10/1/2018

 N/A 

65 years 1 month

$1,155.00

27

Terminated Vested

$42.78

$34.83

$940.41

$1,034.45

$120.55

30%

$346.50

$808.50

$120.55

No

No

Yes

10.4%

$120.55

$1,034.45
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 6 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #4: Proposed benefit cut for pensioners, disability limit applies

A. Date of Birth

B. Date of Retirement

C. Effective Date of Suspension

D. Age at Retirement Date

E. Age at End of Month Containing Suspension Date

F. Monthly Benefit in Pay Status

G. Credited Service

H. Participant Status & Form of Benefit

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $33) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit 

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Final Reduction Percentage

V. Final Amount Cut 

W. Final Benefit, reflecting proposed suspension and limits

7/1/1969

4/1/2007

10/1/2018

37 years 9 months

49 years 3 months

$640.00

8

Disabled, 50% J&S

$80.00

$35.75

$286.00

$314.60

$325.40

30%

$192.00

$448.00

$0.00

No

Yes

No

0%

$0.00

$640.00
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 7 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #5: Proposed benefit cut for contingent beneficiary of pensioner, disability limit applies

A. Date of Birth

B. Retiree’s Date of Retirement

C. Effective Date of Suspension

D. Age at Retiree’s Retirement Date

E. Retiree’s Age at End of Month Containing Suspension Date

F. Survivor’s Monthly Benefit

G. Retiree’s Credited Service

H. Participant Status

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $33) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit 

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Final Reduction Percentage

V. Final Amount Cut 

W. Final Benefit, reflecting proposed suspension and limits

5/15/1966

4/1/2007

10/1/2018

 40 years 10 months 

49 years 3 months

$320.00

8

Beneficiary

$40.00

$32.75

$262.00

$288.20

$31.80

30%

$96.00

$224.00

$0.00

No

Yes

No

0%

$0.00

$320.00
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 8 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #6: Proposed benefit cut for future retiree, disability limit applies

A. Date of Birth

B. Date of Retirement

C. Effective Date of Suspension

D. Age at Retirement Date

E. Age at End of Month Containing Suspension Date

F. Accrued Monthly Benefit

G. Credited Service

H. Participant Status

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $33) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit 

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Final Reduction Percentage

V. Final Amount Cut 

W. Final Benefit, reflecting proposed suspension and limits

10/21/1970

N/A

10/1/2018

 N/A 

48 years 0 months

$2,265.00

24

Terminated Vested

$94.38

$35.75

$858.00

$943.80

$1,321.20

30%

$679.50

$1,585.50

$0.00

No

Yes

No

0%

$0.00

$2,265.00
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 9 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #7: Proposed benefit cut for pensioners, age-based limitation applies

A. Date of Birth

B. Date of Retirement

C. Effective Date of Suspension

D. Age at Retirement Date

E. Age at End of Month Containing Suspension Date

F. Monthly Benefit in Pay Status

G. Credited Service

H. Participant Status & Form of Benefit

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $33) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit, before age-based limit

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Months between End of Month Containing Suspension Date and 

Date Participant turns 80

V. Applicable percentage of cut 

(prorated by number of months (U / 60))

W. Final Reduction Percentage

X. Final Amount Cut 

Y. Final Benefit, reflecting proposed suspension and limits

11/7/1940

9/1/2001

10/1/2018

60 years 9 months

77 years 11 months

$2,490.00

36

Retiree, 50% J&S

$69.17

$35.75

$1,287.00

$1,415.70

$1,074.30

30%

$747.00

$1,743.00

$747.00

Yes

No

No

25 months

41.7%

12.5%

$311.25

$2,178.75
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 10 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #8: Proposed benefit cut for contingent beneficiary of pensioners, age-based limitation 

applies

A. Date of Birth

B. Retiree’s Date of Retirement

C. Effective Date of Suspension

D. Age at Retiree’s Retirement Date

E. Retiree’s Age at End of Month Containing Suspension Date

F. Survivor’s Monthly Benefit

G. Retiree’s Credited Service

H. Participant Status

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $33) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit, before age-based limit

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Months between End of Month Containing Suspension Date and 

Date Participant turns 80

V. Applicable percentage of cut 

(prorated by number of months (U / 60))

W. Final Reduction Percentage 

X. Final Amount Cut

Y. Final Benefit, reflecting proposed suspension and limits

8/31/1941

9/1/2001

10/1/2018

60 years 0 months

77 years 11 months

$1,245.00

36

Beneficiary

$34.58

$28.69

$1,032.84

$1,136.12

$108.88

30%

$373.50

$871.50

$108.88

Yes

No

Yes

25 months

41.7%

3.6%

$45.37

$1,199.63
Western States Office and Professional Employees Pension Fund

Exhibit 4: Page 11 of 11

Exhibit 4

Demonstration that Limits on Individual Suspensions Are Satisfied 

Pursuant to IRC Sections 432(e)(9)(D)(i) through (iii)

Example #9: Proposed benefit cut for future retiree, age-based limitation applies

A. Date of Birth

B. Date of Retirement

C. Effective Date of Suspension

D. Age at Retirement Date

E. Age at End of Month Containing Suspension Date

F. Accrued Monthly Benefit

G. Credited Service

H. Participant Status

Calculation of 110% of PBGC Guarantee

I. Yearly Accrual Rate for Monthly Benefit (F / G)

J. PBGC Guaranteed Accrual Rate

(100% x $11) + (75% x $33) 

K. PBGC Guaranteed Benefit (J x G)

L. 110% of PBGC Guaranteed Benefit

M. Amount Cut under PBGC Guaranteed Limit (F - L)

Calculation of Monthly Benefit under Proposed Suspension

N. Reduction Percentage

O. Amount Cut

P. Proposed Monthly Benefit

Q. Maximum Suspendible Benefit, before age-based limit

R. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date)

S. Does disability limitation apply?

(Participant in disabled status, no reduction if disabled)

T. Does 110% PBGC limit apply?

(Proposed Monthly Benefit less than 110% PBGC Benefit P<L)

U. Months between End of Month Containing Suspension Date and Date 

Participant turns 80

V. Applicable percentage of cut 

(prorated by number of months (U / 60))

W. Final Reduction Percentage 

X. Final Amount Cut

Y. Final Benefit, reflecting proposed suspension and limits

10/28/1942

N/A

10/1/2018

N/A

76 years 0 months

$605.00

9

Terminated Vested

$67.22

$35.75

$321.75

$353.93

$251.07

30%

$181.50

$423.50

$181.50

Yes

No

No

48 months

80.0%

24.0%

$145.20

$459.80