1. Service Center Training: Plan Provisions
BizCo Pension Plan
Service Center Training: Plan Provisions
Presented by
Month YYYY

2. History of Plan

3. Terminology
Actuarial Equivalent: Two benefits that are Actuarial Equivalent have the same value, on the basis of actuarial factors set forth in the Plan. 
Alternate Payee: Former spouse of a plan participant who is receiving a pension benefit due to a Qualified Domestic Relations Order (QDRO).
Cost of Living Adjustment (COLA): A yearly adjustment to a retiree's pension based on the cost of living 
Deferred Vested Pension (DVP): When a Participant’s pension benefit is deferred to a future date instead of commencing receipt of the pension benefit upon termination of employment.
Final Average Compensation (FAC): Means the average annual compensation paid to a Participant during the 60 consecutive calendar months for which compensation is the highest within the last 120 consecutive calendar months immediately preceding the date employment ends.
Vesting Service: Vesting refers to your ownership of your pension benefit. Periods of Service are considered in determining whether or not the Participant is entitled to vested benefit.
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4. ESS Access
Actives
Deferred Vesteds
Retirees

5. BizCo Pension Service Center
Pension Benefits

6. Plan Highlights Frozen to new entrants after 12/31/2010
Everyone can commence as early as age 55
100% vested after 5 years of Vesting Service
Lump Sum offered to participants who terminated after 12/31/1999
Covers both union and non-union participants

7. Eligibility / Participation
Employees hired 1/1/2011 and after are not eligible to participate in the pension plan.
Participation Criteria
Salaried employees only
hourly employees are not eligible
One year of eligibility service
Must be 21 years of age or older
Hired on or before 12/31/2010
! Closed to new entrants.

8. Service Eligibility Service
Used to determine eligibility to participate in the Plan
Counted from the date employee begins employment.
Vesting Service
Counted from the date employee begins employment
100% vested after five years of vesting service
100% vested if termination occurs after normal retirement age
Benefit Service
Benefit service will begin on Participation date (so no time before age 21 is included)
35 year limit when calculating benefits

9. Pension Compensation Compensation generally includes the following:
Wages, salaries and other income for services (base pay)
401(k) deductions
H&W contributions
Compensation does not include:
Deferred Compensation – Contributions or Withdrawals
Severance pay in excess of regular base salary in last year of employment

10. Formulas
Effective 1/1/2001, a Cash Balance formula for determining benefits was adopted for the non-union Plan. The Cash Balance formula consists of two primary components:
Pay Credits: generally credited to your cash balance account at the end of each Plan Year
Your Eligible Pay x 3% Pay Factor = Pay Credit
Interest Credits: an interest credit of 4% to be applied to the cash balance account at the end of each year
Cash balance account x 4% Interest Factor = Interest Credit
Supplemental Pay Credits: may also be eligible for a supplemental pay credit if the pay was above the Social Security Wage Base (SSWB)

11. Non-Qualified Plan Eligibility
Any participant in the BizCo plan whose benefit is limited by:
Pay in excess of the pay limits (Section 401(a)(17), or
Benefits in excess of the Section 415 Limits, or
Deferred Compensation that was excluded from the qualified plan calculations
Benefit
Uses the same formulas as the qualified plan, but includes:
FICA taxes…
Will be owed on the present value of the BEP benefit at termination
Will be calculated at time of commencement
Are withheld from payments until amount is completed (participants do not write checks for taxes)

12. Non-Qualified Plan (continued)
Forms of Payment
100% Joint and Survivor Annuity
Mandatory for Married Participants
Spouse as survivor
Single Life Annuity
Mandatory for Single participants
Less than $5,000 is a cashout
Commencement Date
Payments will begin within 60 days following termination date

13. Normal Retirement Eligibility Benefit Commencement Date
Normal Retirement Age (NRA) is 65
Benefit
The Accrued Benefit
Commencement Date
Benefits are payable the 1st of the month following the later of:
Normal retirement age
The 10th anniversary of the year of participation
Termination of employment

14. Early Retirement Eligibility Reductions
Age 55 and 10 Years of Service at termination
Reductions
The Normal Retirement Benefit is reduced by 5/12 of 1% (5% reduction per year) for each completed calendar month the Retirement Allowance commences prior to the Normal Retirement Date.

15. Late Retirement Eligibility Benefit Commencement Date
Continued employment beyond Normal Retirement Date
Benefit
The greater of 1 and 2, where:
The benefit calculated at Late Retirement Date instead of the Normal Retirement Date
The Accrued Benefit calculated at Normal Retirement Date, actuarially increased to the Late Retirement Date
Commencement Date
Benefits will be postponed as long as the participant continues to work for the Company full time.
Payment must be made by the later of,
date of term or;
April 1 following age 70½

16. Deferred Vested (DV) Retirement
Eligibility
First of the month coincident with or next following the date a participant attains age 55 and has at least 10 years of Continuous Service
Age
Reduction 65
100% 64
90% 63
80% 62
72% 61
65% 60
59% 59
53% 58
48% 57
44% 56
40% 55
37%

17. Pre-Retirement Death Benefit Active Participants
Eligibility
A pre-retirement death benefit is payable to the participant’s spouse if a vested participant dies and had not started receiving retirement benefits.
Benefit
Participant’s surviving spouse receives the 50% portion of the 50% Joint and Survivor Annuity
Commencement Date
If the participant dies on or after their Early Retirement Date, the spouse can commence as soon as the 1st of the month following the Date of Death, or defer until any date up to and including the participants NRD
If the participant dies before their Early Retirement Date, the spouse can commence as soon as the 1st of the month following the participants Early Retirement Date, or defer until any date up to an including the participants NRD

18. Pre-Retirement Death Benefit Deferred Vested Participants
Eligibility
A pre-retirement death benefit is payable to the participant’s spouse if a vested participant dies and had not started receiving retirement benefits.
Benefit
Participant’s surviving spouse receives the 50% portion of the 50% Joint and Survivor Annuity
Commencement Date
If the participant dies on or after their Early Retirement Date, the spouse can commence as soon as the 1st of the month following the Date of Death, or defer until any date up to and including the participants NRD
If the participant dies before their Early Retirement Date, the spouse can commence as soon as the 1st of the month following the participants Early Retirement Date, or defer until any date up to an including the participants NRD

19. Disability Retirement Benefit
Eligibility
Age 50 with 15 Years of Service
Also must qualify for disability benefits under the Social Security Act
Benefit
Optional forms of payment are the same as those available at any commencement date

20. BizCo Pension Service Center
Forms of Payment
These numbers will be updated quarterly, according to General Counsel data.
Map slide – we’re big, offices all over, global provider (speaking points to the IT folks that don’t know the TW brand)

21. Forms of Payment Normal Forms of Payment Optional Forms of Payment
Unmarried Normal Form: Single Life Annuity
Married Normal Form: Qualified Joint and 50% Survivor Annuity
Optional Forms of Payment
Single Life Annuity
10 Year Certain & Life Annuity
50% Joint & Survivor Annuity
66-2/3% Joint & Survivor Annuity
75% Joint & Survivor Annuity
100% Joint & Survivor Annuity

22. Mandatory Lump Sum Cashout
If the present value of the accrued benefit at termination is less than or equal to $5,000, the benefit will be paid as a single lump sum payment.
Processing of rollovers:
If a rollover is elected, the check is made payable to the financial institution for the benefit of the participant
If the present value is between $1,000 and $5,000 and the participant does not make an election for a cash payout or a rollover, an IRA account is set up for participant with BizCo.

23. BizCo Pension Service Center
Other Noteworthy Items…

24. Qualified Pre-Retirement Survivor Annuity (QPSA)
If a vested participant (active or inactive) dies prior to benefit commencement date, the surviving spouse is eligible for a benefit
This benefit is free of charge while participant is an active employee
Deferred vested participants are charged for this coverage if they terminated after 1/1/1988

25. Cost of Living Adjustment (COLA)
Determined each Plan year = percentage change in the Consumer Price Index (CPI) for the 12 month period ending on October 31 of the year prior to the current Plan year
Plan Year
COLA %
2008
2.20%
2009
2010
1.71%
2011
0.61%
2012
2.10%

26. Next session…
Processes