"Normal Form" of Retirement Benefit

Your annual accrued retirement benefit reported on your annual statement is the Normal Form of Retirement Benefit. The Normal Form of Retirement Benefit is payable for your lifetime but guaranteed for 5 years. This option is called a Life Annuity Guaranteed 5 Years. This means that if you die before 60 monthly payments have been made to you, your beneficiary receives the balance of the monthly payments until a total of 60 monthly payments have been made.

If you have a Spouse at your retirement date, the Federal Legislation (PBSA) restricts your right to have your retirement benefit payable under the Normal Form. In this case you are required to elect to receive your retirement benefit in a form no less than the Joint & Survivor 60% that will continue to your spouse for their lifetime on your death.

Optional Forms of Retirement Benefit

The Optional Forms of benefit available depend on whether or not you have a Spouse at retirement.

Spouse means a person of the opposite sex or same-sex (effective April 1, 1998), to whom you are married to at the time of your retirement; or if there is no such person, a person with whom you have lived in a conjugal relationship for at least one year immediately before retirement ("common-law" spouse). If you have both a legal spouse and a common-law spouse then the "spouse" is the common-law spouse for the purpose of receiving a death benefit.

*With a Spouse at Retirement - you must elect to receive a retirement benefit under a Joint and Survivor Annuity Option that, on your death, provides your Spouse with a lifetime benefit of at least 60% but no more than 100% of the amount you were receiving before your death. If your Spouse provides the Trustees with a signed Waiver form required by PBSA, within 90 days of the start date of your Retirement Benefits, you may choose an optional form that provides for lesser or no payments to your Spouse.

Without a Spouse at Retirement - you may elect any optional form offered by the Trustees except a Joint and Survivor optional form. You will be requested to sign a declaration form stating you do not have a spouse (as required by PBSA).

The Optional Forms include:

a) Life Annuity-Guaranteed 10 Years - if the retired Participant dies before 120 monthly payments are made, the balance of the 120 payments remaining are paid to the beneficiary.

b) Life Annuity-Guaranteed 15 Years - if the retired Participant dies before 180 monthly payments are made, the balance of the 180 payments remaining are paid to the beneficiary.

c) Joint and Survivor Income Continuing at 50% - provides a benefit which reduces on the death of the Retired Participant by 50% and is paid to the Spouse for life.

d) *Joint and Survivor Income Continuing at 60% - provides a benefit which reduces on the death of the Retired Participant to 60% and is paid to the Spouse for life.

e) Joint and Survivor Income Continuing at 75% - provides a benefit which reduces on the death of the Retired Participant to 75% and is paid to the Spouse for life.

d) Joint and Survivor Income Continuing at 100% - provides a smaller amount payable for the life of the Retired Participant and then the same amount to his surviving Spouse for life.

e) Level Income Option (only available on Early Retirement between age 55 to 65) - This option has been designed for Participants who wish to retire early and receive an income before age 65 that is approximately equal to the income they will receive after age 65 inclusive of benefits payable from the Canada Pension Plan(CPP) and Old Age Security(OAS). This option adjusts your pension so that you receive a higher pension amount from the Plan before age 65 and a lower amount from the Plan after age 65. If however CPP and/or OAS becomes unavailable, the pension from the Plan will still be reduced. This option can be attached to any of the above Normal or Optional Forms of Pension.

Note: Before your retirement, the Plan Administration Office will provide you with a complete description of the various optional forms and an estimated amount of benefit. Please be sure to contact the Plan Administration Office 3 months prior to your Retirement date.

*Requirement by Federal Legislation (PBSA) 1985