F.7 Lump Sum Payment of Employer Contributions You may elect a lump sum payment of employer Contributions that were required to be paid to the Pension Trust on your behalf before July 1, 1990. The lump sum payment will be paid 12 months from the later of a) the date you and your Spouse (if you have a Spouse) sign and file your retirement application and b) the date you Separate from Service. If you work any hours in Covered Employment during your 12 month waiting period, your retirement application will be voided. If you have proof of an illness likely to result in your death within 12 months, you may request waiver of the 12-month period. If the lump sum payment amount is equal to or greater than the actuarial present value of your total accrued benefit earned before and after July 1, 1990, the lump sum payment is full payment of all benefits to which you or any Beneficiary is entitled. The determination of the present value of your benefit depends on your age and the applicable interest rate and mortality table in effect when he receives his lump sum. If the lump sum payment is less than the actuarial present value of your benefit, the difference will be paid as an annuity. EXAMPLE: Derek was employed under the Plan from 1985 to June 30, 1997. Derek’s employers contributed $30,000 on his behalf between 1985 and June 30, 1990. Derek’s employers contributed $45,000 to the Plan on his behalf between July 1, 1990 and June 30, 1997. Derek retires at age 53 and takes a lump sum withdrawal of the $30,000 in Employer Contributions made before July 1, 1990. The actuarial present value of his total monthly benefit is $80,000. The $50,000 difference between the actuarial present value of Derek’s benefit and the amount of his lump sum withdrawal of Contributions is converted to a monthly benefit and paid as a residual annuity. EXAMPLE: Robin retired in 1994, and elected to take a lump sum payment of her employer Contributions before July 1, 1990. The amount of her pre-July 1, 1990 Contributions exceeded the actuarial present value of the annuity she would have been entitled to for her benefits accrued through 1994. She therefore received no residual monthly annuity, having received payment in full for benefits accrued through 1994. Even if Robin works 1,000 hours after June 30, 1997, she will be entitled to no increase in the benefits she earned through her retirement in 1994. If you received the lump sum payment: You are ineligible for the Overlay, as described in Section 5.5, with respect to the amounts received as a lump sum payment; A full actuarial reduction from Normal Retirement Age will be applied to the residual annuity for any benefit accruals after June 30, 2000. For earlier benefit accruals, a full actuarial reduction will also be applied to the residual annuity, but the actuarial reduction is calculated from the age that you qualify for Qualified or Early Retirement Benefits, or from Normal Retirement Age, whichever is earliest; and Your pre-lump sum service does not count toward the hours or service requirement of the Rule of 80, Early, or Qualified Retirement Benefits.