Retirement Plan - uawlap.org

1 119119119 After an overview, this section of your handbook an-swers these questions:PageWhat circumstances affect your monthlyretirement benefit?120 What is the Special Age 65 Benefit?121 What plan provisions apply to those whoretire under the Disability Retirement plan ?122 Can my spouse receive RetirementPlan benefits?123 What other important information do Ineed to know?123 What if a claim of benefits or participationis denied?124 Retirement Plan120 Retirement PlanAn overview of the PlanAn important source of income after you retire is availablefrom the Ford-UAW Retirement plan . This plan becameeffective March 1, 1950, and has been amended manytimes since Retirement benefit you are receiving was determinedby the provisions of the plan in effect when you amount of your benefit at Retirement may have in-creased as a result of plan circumstances affect your monthly retirementbenefit?Your monthly Retirement benefitRegardless of your type of Retirement , your benefit wasbased on your credited service and the plan provisions ineffect at the time you retired.

2 if you retired prior to Octo-ber 1, 2003 your Retirement benefit may have increasedas a result of prior plan PaymentsThe company will make four (4) lump-sum payments toeligible retirees and surviving spouses (other than thoseretirees and surviving spouses who are receiving deferredvested benefits). Beginning December 2003 and again inDecember 2004, December 2005 and December 2006, alump sum payment will be paid from either the Ford-UAWR etirement plan Fund, company funds or a combinationof both Retirement and company it works:In December 2003, December 2004, December 2005 andDecember 2006, a lump-sum payment in the amount of$800 will be paid to eligible employees who retired prior toOctober 2003, and who are receiving benefits on Decem-ber 1, 2003, December 1, 2004, December 1, 2005 andDecember 1, 2006. For each of the four (4) lump-sum pay-ments, if an eligible surviving spouse is receiving a pen-sion benefit (other than a benefit based on a deferredvested benefit) as of December 1, 2003, December 1,2004, December 1, 2005 or December 1, 2006, he or shewill be eligible for 65% or $520, provided the employeeretired or died before October 1, all or a portion of the lump-sum is paid from the Re-tirement Fund and you are divorced, a portion of yourlump sum may be paid to an alternate payee if assignedunder the terms of a Qualified Domestic Relations Or-der (QDRO).

3 Not all QDROs or divorce decrees will af-fect payment of the lump PlanRetirement Plan121 What is the Special Age 65 Benefit?A Special Age 65 Benefit is included in your retirementcheck when you are receiving a Retirement benefit (otherthan a deferred vested benefit), you are at least age 65,and are enrolled in Medicare Part B. Although included inyour Retirement check, the Special Age 65 Benefit is ahealth benefit and is funded through the health some circumstances, you may be eligible to receive aSpecial Age 65 Benefit before you are age 65. You mustapply for this benefit. To be eligible, you must be enrolledfor voluntary medical insurance under Medicare com-monly known as Medicare Part on or after January 1, 2004, the monthlyage 65 benefit is the lesser of $ or the applicableMedicare Part B surviving spouse who is at least age 65 may receivea Special Age 65 Benefit when he or she is receiving aretirement benefit (other than a surviving spouse benefitpayable as a result of a deferred vested benefit or a pre- Retirement survivor benefit).

4 Surviving spouses must beenrolled or enroll for Medicare Part B when first eligible tocontinue company -paid health eligible for Medicare Part B must enroll andmaintain continued enrollment in Medicare Part B to beeligible to receive the Special Age 65 Benefit. Upon re-ceipt of a completed enrollment form, the company willonly reimburse for 24 months prior to the date the formis you are divorced after you retire or your spouse dies beforeyou doGenerally, if you have the automatic Survivorship Optionin effect, your Life Income Benefit will be increased to theamount that would be payable without the option if: Your spouse dies before you do and you submit acertified copy of the death certificate to the Retire-ment Board. You are divorced, and your divorce decree does notprohibit cancellation of the Survivorship coverage youmay cancel your election unless a Qualified DomesticRelations Order provides otherwise or your formerspouse consents in writing to cancel the coverage bysigning a company approved waiver.

5 The amount ofthe restoration is based on the type of SurvivorshipOption in effect and the date you elected the increase will be effective the first of the month in theevent of death or divorce after you submit proper noticeand proof of death or final decree of divorce and your formerspouse s written consent or a qualified domestic relationsorder to the Retirement you are covered by the Special Disability SurvivorshipOption, and your spouse dies before you, or you becomedivorced, the provisions regarding cancellation describedearlier would not apply until you reach age 55. Once youhave attained age 55, the automatic Survivor Option isavailable and your Special Disability Survivorship coveragewill automatically cancel. You will be notified by theRetirement Board of your new survivorship election optionsshortly before your 55th you marry or remarry after retirementGenerally, you may elect the Survivorship Option if youmarry or remarry after Retirement and you: Have not previously rejected a survivorship option Do not have a survivorship option in effect Apply before you have been married 18 monthsThe amount of your benefit reduction and the percentagethat will be payable to your spouse will be determined byPlan provisions in effect at the time of your the Retirement Board if you need information orhave any questions about the benefit amount or your eli-gibility for a Survivorship forms of survivorship coverage - 50% or 100% Surviv-ing Beneficiary BenefitIf you retired on or after January 1, 2004, you had theoption to elect someone other than a spouse for a survivor sbenefit.

6 if you were married, your spouse had to agree tothis decision by giving written consent witnessed by anotary Optional 50% or 100% Beneficiary Benefit: Was available to members who applied for Normal, Regu-lar Early, Special Early or a Deferred Vested Retirement Cannot be elected after Retirement benefits commence Cannot be cancelled due to death of the beneficiary Cannot be cancelled due to divorce Does not go into effect if the employee dies before theeffective date of the election. The election shall auto-matically be PlanWhat plan provisions apply to those who retire underthe Disability Retirement plan ? if you retired from the company on a Disability Retire-ment, disability Retirement benefits end when you no longermeet the requirements for total and permanent that time, you may retire on a non-disability retirementif you meet the eligibility requirements, or if approved bythe Retirement Board, you may return to work for the Com-pany.

7 if you remain disabled until you attain age 65, yourLife Income Benefit will be you retired on a Disability Retirement before age 55 withless than 30 years of credited service, your spouse will beentitled to the Special Disability Survivorship Option if: You and your spouse have not rejected the Special Dis-ability Survivorship Option You have been married for at least one year at your deathIf you had the Special Disability Survivorship Option ineffect before age 55, remember that this option remainsin effect only until you attain age 55. At that time, you willbe covered by the automatic Survivorship Option, unlessyou and your spouse reject the option. You will be notifiedby the Retirement Board of applicable provisions shortlybefore your 55th you become disabled after you retire, you do not qualifyfor Disability Retirement under the you become eligible for a Social Security disability benefit (orother Social Security benefit not reduced because of your age)after retirementSupplemental Allowances and/or Temporary Benefits arebenefits generally provided until you are eligible for SocialSecurity benefits.

8 You must notify the Board if you becomeeligible for a Social Security Disability benefit or otherunreduced Social Security benefit after Supplemental Allowance or Temporary Benefit youreceive after you become eligible for a Social Securitydisability benefit or other Social Security benefit notreduced because of your age will be recovered from yourfuture Life Income Benefit. if you notify the RetirementBoard within 15 days after your receipt of a retroactiveSocial Security disability award, the amount ofoverpayment of any temporary benefit or supplement forthe earlier period will be reduced by the attorney feesawarded by Social Security for a successful appeal notexceeding 25% of the award. You will need to pay theBoard within 30 days of written notice of the award of thenet overpayment, Plan123 Can my spouse receive Retirement plan benefits?Your spouse or beneficiary (for retirements on or after Janu-ary 1, 2004) may be eligible to receive payments from thePlan if you have: The automatic survivorship option or optional survivingbeneficiary benefit (for retirements on or after January1, 2004) in effect at the time of your death Been married for at least one year as of the date ofyour death for the automatic survivorship optionSurvivor benefits begin on the first day of the month fol-lowing your death and receipt of an application from yoursurviving spouse.

9 A copy of your marriage certificate anddeath certificate will be required at the time of yourspouse s you are a disability retiree with less than 30 years ofcredited service, you have not attained age 55 when youdie and you have a Special Disability Survivorship Optionin effect, payments to your spouse will begin on the firstday of the month following the month you would have beenage spouse will not receive a pension benefit in any monthhe or she is receiving a Transition or Bridge SurvivorIncome Benefit under the Life and Disability InsuranceProgram. For more information on Transition or BridgeSurvivor Income Benefits, refer to the Life InsuranceBenefits section of this spouse will not be eligible to receive payments fromthe Retirement plan in the event of your death if: No survivorship option was available; You cancelled due to spouse s death or divorce - or youdid not elect the automatic survivorship option; or You did not elect the optional surviving beneficiarybenefit for retirements on or after January 1, 2004 atthe time of your retirementThe Special Survivor Option benefit was increased by$ per year of credited service.

10 (From $ to $ year of credited service.)What other important information do I need to know?Receiving your Retirement benefitAll Retirement payments are mailed by the first of eachmonth and represent payments in advance for that deposit and electronic transferYou can make arrangements to have your pension checkdirectly deposited or electronically transferred to a bankor other financial institution of your choice. You may changethese arrangements by advising the Retirement taxes on your benefitsWhen you receive benefits from the Ford-UAW RetirementPlan, those benefits are taxed as ordinary tax law requires the Ford-UAW Retirement Planto withhold income taxes from your benefits unless youtell the Ford-UAW Retirement plan withholding, youshould complete Form W-4P and submit it to theRetirement Board. Form W-4P is available from theNESC, the Retirement Board or a local office of theInternal Revenue Service (IRS). if you do not submit any Form W-4P, the Ford-UAW RetirementPlan will automatically withhold taxes from your benefitsand will assume you are married and claim three withholdingallowances at the federally mandated no taxes are withheld from your benefit, or if the amountwithheld is not enough to cover the actual taxes due, youmay be required to make estimated tax may elect state withholding from your pension checksfor any case of a Federal garnishmentA Federal writ of garnishment against your pension ben-efit may be obtained by the US Government pursuant tothe procedures authorized by the Federal DepartmentCollections Procedures Act of 1990 (FDCPA), 28 3001-3308, and the Mandatory Victims Restitution Act,18 83614(c).