NASI PENSION FUND – BENEFIT OPTION RESTORATION
Wednesday, March 9, 2022

NASI Pension Option Restoration  

During the period in which the NASI Pension Fund was certified as in “critical status” under the Pension Protection Act of 2006, the NASI Pension Fund was prohibited from offering certain benefit payment options that were offered to Participants prior to that certification. However, now that the NASI Pension Fund has emerged into the “Green Zone”, these benefit payment options are now available to Participants applying for an Early or Regular Pension.  

Since these options have not been available for several years, this is an informational notice to: (a) make you aware that Participants applying for their pensions will have revised NASI Pension Fund applications with the new options included; and (b) serve as a primer on the five (5) benefit options that have not been available for over a decade. 

Below is a brief description of each of these five (5) benefit options which are now available to newly retiring Pensioners.  You will see that each description includes an example for an active, married Participant who is 55 years of age with Pension Credits valued at $3,750.00 at Normal Retirement Age ($3,300.00 at age 55), with a Spouse that is the same age (“Example Participant”). 

Please remember that the five benefit options which were previously prohibited while the Fund was classified as in “critical status” are only available to Participants who qualify for either an Early or Regular Pension. In other words, these benefit payment options are not available to any Participants who retire with a Vested, Disability, or Early pending Disability Pension.  
As always, if you have questions regarding these options (or any other questions regarding your NASI Pension Fund benefits), please reach out to the NASI Pension Fund Department at the Fund Office (800-638-2603). 

1) Partial Lump-Sum with 100-payment Guarantee Option 

An unmarried or married (with the notarized consent of the Spouse) Participant may elect a cash lump-sum option if he or she qualifies for either a Regular or Early Retirement Pension. Under this option, the Participant can elect to reduce the amount of their monthly pension payment and instead receive a cash lump-sum of up to $2,000.00 along with their first payment. The amount of the reduction to their monthly payments for this option will depend on the Participant’s age at the time of his or her retirement. This benefit comes with a 100-payment Guarantee in which the Participant will receive monthly payments for his or her lifetime; however, in the event the Participant dies before receiving 100 total payments, payments will continue to the Participant’s Beneficiary(ies) until an aggregate of 100 payments have been made. This benefit does not provide a Joint-Life and Survivorship option. Therefore, there will be no lifetime benefit available to a married Participant’s Spouse in the event the Participant predeceases the Spouse.  

a) Example: If the Example Participant elects to receive $2,000 under the Partial Lump-Sum with 100-payment Guarantee option, the Example Participant’s Early Retirement monthly benefit would be reduced by $8.23 per month, for a monthly payment of $3,291.77 ($3,300.00 - $8.23 = $3,291.77). The Participant would receive $5,291.77 for his first month of retirement and $3,291.77 per month thereafter for his or her lifetime. If the Participant dies prior to receiving 100 total payments, the Participant’s Beneficiary(ies) will receive monthly payments of $3,291.77 until 100 total payments have been made.   

2)  Split-Level Option – Age 62  

An unmarried or married (with the notarized consent of the Spouse) Participant retiring prior to age 62 may elect the Split-Level at Age 62 benefit payment option. This option provides a higher monthly payment under the Regular or Early Retirement Pension until age 62.  At age 62, the Participant’s benefit from the Plan is reduced so that the Participant’s total retirement income (Plan benefit + Social Security benefit, assuming the Participant commences Social Security benefits at that time) remains roughly the same after he or she begins receiving their Social Security benefit as it was prior to their receiving their Social Security benefit.  In other words, the benefit is intended to provide for level retirement income from all sources throughout a participant’s retirement.    

If the Participant elects only the Split-Level option, no further benefits will be paid upon the Participant’s death; however, if the Participant is married, he or she can elect the Split-Level with a 50% Joint-and-Survivor option (explained in Section 3 below) if the Participant would like benefits to continue to be paid to his or her Spouse upon the Participant’s death. The information provided in the Participant’s retirement packet will provide a calculation using a $500.00 decrease in the monthly pension amount paid after age 62; however, the Participant may contact the Fund office for additional reduction options. 

a) Example: If the Example Participant elects to receive the Split-Level option with a reduction of $500.00 at age 62, the Participant’s Early Retirement benefit would be increased by $349.70 per month from age 55 until age 62, for a total monthly benefit of $3,649.70 ($3,300.00 + $349.70 = $3,649.70); however, at age 62, the Participant’s monthly payments from the NASI Pension Fund will decrease by $500.00 to $3,149.70 per month ($3,649.70 - $500.00 = $3,149.70) and will remain so until the date of his or her death. There is no 100-payment Guarantee with this option, and all benefit payments provided under this option terminate after the Participant’s death.   

3)  Split-Level – Age 62 with 50% Joint and Survivor Option 

Married Participants may also elect the Split-Level at Age 62 with the 50% Joint and Survivor option. This would work in a similar way as the Split-Level at Age 62; however, instead of the benefit terminating at the Participant’s death, the Participant’s Spouse (if the Spouse survives the Participant) would receive the Survivor benefit available under the 50% Joint and Survivor option. 

a) Example: If the Example Participant elects to receive the Split-Level with 50% Joint and Survivor option with a reduction of $500.00 per month at age 62, the Participant’s Early Retirement benefit is $3,135.00 per month under the 50% Joint and Survivor option ($3,300.00 x 95% = $3,135.00). This amount would be increased by $336.50 per month from age 55 until age 62, for a total of $3,471.50 per month ($3,135.00 + $336.50 = $3,471.50); however, at age 62, the Participant’s monthly payments from the NASI Pension Fund will decrease by $500.00 to $2,971.50 per month ($3,471.50 - $500.00 = $2,971.50) and will remain so until the date of his or her death. If the Participant predeceases his or her Spouse at any point during retirement, the Spouse will receive the 50% Joint and Survivor benefit of $1,567.50 per month ($3,135.00 x 50% = $1,567.50) for the remainder of the Spouse’s life, regardless of the Participant’s age at the time of death. 

4) Split-Level Option – Age 65  

This option works the same as the Split-Level Option – Age 62, described above except that the monthly benefit payable from the NASI Pension Fund is reduced at age 65 instead of age 62. 
Under this option, no further benefits will be paid upon the Participant’s death; however, if the Participant is married, he or she can elect the Split-Level with a 50% Joint-and-Survivor option (explained in Section 5 below) if the Participant would like benefits to continue to be paid to his or her Spouse upon the Participant’s death. The information provided in the Participant’s retirement packet will provide a calculation using an assumed $500.00 decrease in the monthly pension amount paid after age 65; however, the Participant may contact the Fund office for additional reduction options.

a) Example: If the Example Participant elects to receive the Split-Level option with a reduction of $500.00 at age 65, the Participant’s Early Retirement monthly benefit would be increased by $291.20 per month from age 55 until age 65, for a total benefit of $3,591.20 per month ($3,300.00 + $291.20 = $3,591.20); however, at age 65, the Participant’s monthly payments from the NASI Pension Fund will decrease by $500.00 to $3,091.2/month ($3,591.20 - $500.00 = $3,091.20) and will remain so until the date of his or her death. There is no 100-Payment Guarantee with this option, and all benefit payments provided under this option terminate after the Participant’s death.

5) Split-Level – Age 65 with 50% Joint and Survivor Option

Married Participants may also elect the Split-Level at Age 65 with the 50% Joint and Survivor option. This would work in a similar way as the Split Level at Age 65; however, instead of the benefit terminating at the Participant’s death, the Participant’s Spouse (if the Spouse survives the Participant) would receive the Survivor benefit available under the 50% Joint and Survivor option. 

a) Example: If the Example Participant elects to receive the Split-Level with 50% Joint and Survivor option with a reduction of $500.00 at age 65, the Participant’s Early Retirement monthly benefit is $3,135.00 under the 50% Joint and Survivor option ($3,300.00 x 95% = $3,135.00).  This amount would be increased by $278.00 per month from age 55 until age 65, for a total of $3,413.00 per month ($3,135.00 + $278.00 = $3,413.00); however, at age 65, the Participant’s monthly payments from the NASI Pension Fund will decrease by $500.00 to $2,913.00 per month ($3,413.00 - $500.00 = $2,913.00) and will remain so until the date of his or her death. If the Participant predeceases his or her Spouse at any point during retirement, the Spouse will receive the 50% Joint and Survivor benefit of $1,567.50 per month ($3,135.00 x 50% = $1,567.50) for the remainder of the Spouse’s life regardless of the Participant’s age at the time of death.