The Retirement Plan is intended to provide you with continuing income when you retire –
whether you had continued working for A&B up until your retirement, or had left
A&B years earlier and worked for another employer. The points below outline when and
how you can access your Retirement Plan benefit.
For information regarding the amount of benefits you may be eligible to receive, see
How Your
Benefit Is Calculated. For information regarding forms of payment, see
How Benefit
Payments Are Made.
Normal Retirement
You are eligible to begin receiving the full value of your Cash Balance Account upon your
normal retirement date (age 65). Benefits will begin the first day of the month
following (or coincident with) the day you retire. As explained under How Benefit Payments
Are Made you can elect to receive your Retirement Plan benefit in
the form of an annuity (a monthly payment) or a lump sum payment.
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Early Retirement
You may elect early retirement under the Retirement Plan if you...
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Are age 55 or older,
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Have completed at least five years of service with A&B and/or one of its
participating companies, and
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File a written request for benefits with the Plan Administrator.
Electing early retirement does not affect the value of your benefit. You may choose to
begin receiving the full value of your Cash Balance Account once you qualify for early
retirement – and choose to receive your benefit in the form of an annuity (a monthly
payment) or a lump sum payment.
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Deferred Retirement
You may also choose to continue working beyond your normal retirement date and defer your
retirement. If you do, you will not receive benefits until the later of…
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The date of your actual retirement, or
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April 1 following the year in which you reach age 70½
However, if you own more than 5% of A&B stock, you must begin receiving
benefit payments no later than April 1 following the year in which you reach age
70½, even if you are still working.
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If You Leave A&B Before Retirement Age
Because you earn (accrue) a retirement benefit during your years of employment, and
become vested in that accrued benefit after three years, you are entitled to a benefit
even if you leave A&B before you retire.
If you are vested when you leave A&B and you are not yet retiring you can receive
a lump sum payment equal to the value of your Cash Balance Account. You also have the
option, if your Cash Balance Account value exceeds $5,000 and you are married, to elect
an immediate 50% or 75% Joint and Survivor Annuity with your spouse as contingent
annuitant. Either way, the benefit you receive – either in the form of a lump sum payout
or annuity payments will be taxed upon receipt.
However, if at the time you leave A&B you want to defer paying taxes on your
benefit, you have two options: You can…
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Still take a lump sum payout, but roll the amount over into another retirement
plan, such as an Individual Retirement Account (IRA), or another employer’s
plan*; or
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Leave your Retirement Plan benefit in the Retirement Plan – you will continue to
receive Interest Credits, as described below, which will be applied to your Cash
Balance Account until the time you begin receiving benefits.
However, if you leave A&B
before
you have three years of service, you will lose your right to any benefit.
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If You Die Before Retirement
If you die before you retire and your beneficiary is…
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Your spouse, he or she will receive the value of your Cash Balance Account in the
form of a Single Life Annuity, unless he or she elects to receive a lump sum
payment. (However, if the value of the Cash Balance Account does not exceed $5,000,
your spouse will automatically receive the value as an immediate lump sum payment.)
Your spouse may elect to receive his or her benefit at any time following your
death. If your spouse does not make a specific election, he or she will receive the
benefit upon what would have been your Normal Retirement Date.
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Someone other than your spouse, your beneficiary must receive the value of your Cash
Balance Account as an immediate lump sum payment.
See Designating Your Retirement Plan Beneficiary for more information.
