Your Pension Amount

The amount of your pension depends on a variety of factors:

• The type of pension you elect
• The payment option you elect
• Your earned pension credits
• The years in which you earned credit
• The employer(s) for whom you have worked

Types of Pensions

NIPF offers three types of pensions:

• A Normal Retirement Pension, if you have reached normal retirement age (age 65, or if later, your fifth anniversary as a participant).

• An Early Retirement Pension, if you are at least age 55 but less than age 65. This pension amount is reduced to compensate for the additional years it may need to be paid.

• A Disability Pension, if you are vested and become totally and permanently disabled prior to age 65. It is not reduced for age.

How You Calculate Your Benefit

The monthly pension amount you will receive is determined by using a formula, or in some cases, formulas.

• For pension credits you’ve earned prior to January 1, 2008: The Plan uses two formulas to calculate your benefit, and then applies the formula that produces the highest amount.
  • The Contribution Formula is a percentage of the contributions made to the Plan by your employer(s). Refer to your Summary Plan Description and Summary of Material Modification  for details.
  • The Benefit Table Formula provides benefits based on your years of service and your employer’s average contribution rate. You can find the Benefit Table in the Appendix of your Summary Plan Description.
• For pension credits you’ve earned on or after January 1, 2008: Your benefit is based on the contribution formula—a percentage of the contributions made to the Plan on your behalf. Your benefit for work in 2008 and after is then added to the benefit you earned prior to 2008.

For examples and much more detail on how to calculate your benefit, refer to your Summary Plan Description  and Summary of Material Modification.

Since calculating your own benefit may be complicated, the Benefit Funds office can provide you with an estimate of your future pension benefit. Simply submit the Estimate Request Form to see all contributions made on your behalf to date, and/or to receive an estimate of your future pension benefit.

Your Payment Options

When it’s time to receive your pension, you’ll elect your payment option. If you decide to provide a monthly benefit for your spouse or other survivor in the event of your death, your overall pension amount will be reduced to accommodate those extra payments.

If You Get Married or Divorced

• If you marry before you retire: You will receive a 50% Spousal Pension unless you elect another payment option.
• If you marry after you retire: Your pension benefit is not affected because you cannot change your form of payment after you have begun receiving pension benefits.
• If you are divorced before you retire:The Plan will treat you as a single person, unless there is a Qualified Domestic Relations Order (QDRO).
• If you divorce after you retire: Your form of pension benefit will not change; however, the amount of your pension benefit may change if there is a Qualified Domestic Relations Order.