Exhibit 4: Page 1 of 7 

WESTERN STATES OFFICE AND 

PROFESSIONAL EMPLOYEES PENSION FUND

SECOND SUSPENSION APPLICATION 

Exhibit 4

 
Western States Office and Professional Employees Pension Fund 

Exhibit 4: Page 2 of 7

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 2016-27, the following examples are 

provided to illustrate how the proposed suspension effective June 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. 

Example #2 illustrates the guarantee-based limitation under IRC §432(e)(9)(D)(i), Example #3 

illustrates the disability-based limitation under IRC §432(e)(9)(D)(iii), and Example #4 illustrates 

the age-based limitation under IRC §432(e)(9)(D)(ii). We also provided an Example #1 that 

demonstrates the full proposed cut without limitation and Example #5 that demonstrates the 

age-based limitation for a participant at least age 80. 

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 7

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 pensioners and non-pensioners, no limitations apply 

A. Date of Birth 

B. Date of Retirement 

C. Effective Date of Suspension 

D. Age at Retirement Date 

E. Age at 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 

Calculation of Monthly Benefit under Proposed Suspension 

M. Reduction Percentage 

N. Amount Cut 

O. Proposed Monthly Benefit 

P. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date) 

Q. Does disability limitation apply? 

(Participant in disabled status, no reduction if disabled) 

R. Does 110% PBGC limit apply? 

(Proposed Monthly Benefit less than 110% PBGC Benefit 

O<L) 

S. Final Reduction Percentage 

T. Final Amount Cut 

U. Final Benefit, reflecting proposed suspension and limits 

5/1/1953 

5/1/2015 

6/1/2018 

 62 years 0 month 

65 years 1 month 

$910.00 

14 

Retiree 

$65.00 

$35.75 

$500.50 

$550.55 

30% 

$273.00 

$637.00 

No 

No 

No 

30% 

$273.00 

$637.00 
Western States Office and Professional Employees Pension Fund 

Exhibit 4: Page 4 of 7

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 pensioners and non-pensioners, 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 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 

Calculation of Monthly Benefit under Proposed Suspension 

M. Reduction Percentage 

N. Amount Cut 

O. Proposed Monthly Benefit 

P. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date) 

Q. Does disability limitation apply? 

(Participant in disabled status, no reduction if disabled) 

R. Does 110% PBGC limit apply? 

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

S. Final Reduction Percentage 

T. Final Amount Cut 

U. Final Benefit, reflecting proposed suspension and limits 

2/1/1945 

12/1/2006 

6/1/2018 

 61 years 10 months 

73 years 4 months 

$350.00 

14 

Retiree 

$25.00 

$21.50 

$301.00 

$331.10 

30% 

$105.00 

$245.00 

No 

No 

Yes 

5.4% 

$18.90 

$331.10 
Western States Office and Professional Employees Pension Fund 

Exhibit 4: Page 5 of 7

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 pensioners and non-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 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 

Calculation of Monthly Benefit under Proposed Suspension 

M. Reduction Percentage 

N. Amount Cut 

O. Proposed Monthly Benefit 

P. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date) 

Q. Does disability limitation apply? 

(Participant in disabled status, no reduction if disabled) 

R. Does 110% PBGC limit apply? 

(Proposed Monthly Benefit less than 110% PBGC Benefit 

O<L) 

S. Final Reduction Percentage 

T. Final Amount Cut 

U. Final Benefit, reflecting proposed suspension and limits 

7/1/1969 

4/1/2007 

6/1/2018 

37 years 9 months 

48 years 11 months 

$640.00 

8 

Disabled 

$80.00 

$35.75 

$286.00 

$314.60 

30% 

$192.00 

$448.00 

No 

Yes 

No 

0% 

$0.00 

$640.00 
Western States Office and Professional Employees Pension Fund 

Exhibit 4: Page 6 of 7

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 and non-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 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 

Calculation of Monthly Benefit under Proposed Suspension 

M. Reduction Percentage 

N. Amount Cut 

O. Proposed Monthly Benefit 

P. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date) 

Q. Does disability limitation apply? 

(Participant in disabled status, no reduction if disabled) 

R. Does 110% PBGC limit apply? 

(Proposed Monthly Benefit less than 110% PBGC Benefit 

O<L) 

S. Months between Suspension Date and Date Participant turns 

80 

T. Applicable percentage of cut 

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

U. Final Reduction Percentage 

(M x T) 

V. Final Amount Cut 

W. Final Benefit, reflecting proposed suspension and limits 

3/1/1940 

9/1/2001 

6/1/2018 

61 years 6 months 

78 years 3 months 

$2,490.00 

36 

Retiree 

$69.17 

$35.75 

$1,287.00 

$1,415.70 

30% 

$747.00 

$1,743.00 

Yes 

No 

No 

21 months 

35.0% 

10.5% 

$261.45 

$2,228.55 

 
Western States Office and Professional Employees Pension Fund 

Exhibit 4: Page 7 of 7

Exhibit 4 

Demonstration that Limits on Individual Suspensions Are Satisfied 

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

Example #5: Not suspended due to age over 80

A. Date of Birth 

B. Date of Retirement 

C. Effective Date of Suspension 

D. Age at Retirement Date 

E. Age at 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 

Calculation of Monthly Benefit under Proposed Suspension 

M. Reduction Percentage 

N. Amount Cut 

O. Proposed Monthly Benefit 

P. Does age-based limitation apply? 

(Participant over age 75 at Suspension Date) 

Q. Does disability limitation apply? 

(Participant in disabled status, no reduction if disabled) 

R. Does 110% PBGC limit apply? 

(Proposed Monthly Benefit less than 110% PBGC Benefit 

O<L) 

S. Months between Suspension Date and Date Participant turns 

80 

T. Applicable percentage of cut 

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

U. Final Reduction Percentage 

(M x T) 

V. Final Amount Cut 

W. Final Benefit, reflecting proposed suspension and limits 

1/12/1935 

2/1/1997 

6/1/2018 

62 years 0 months 

83 years 4 months 

$833.00 

17 

Retiree 

$49.00 

$35.75 

$607.75 

$668.53 

30% 

$249.90 

$583.10 

Yes 

No 

No 

0 months 

0% 

0% 

$0.00 

$833.00