Christian Schools International

Section 7 - Benefits - Form and Time of Payment

7.01 - Except as otherwise provided herein, benefits shall be payable in equal monthly installments of 1/12th of the annual amount payable. The first monthly installment shall be as of the 30th day of the month in which the Participant's Early or Normal Retirement Date occurs or, if later, the 30th day of the month following the month in which the last contribution is deducted from such Participant's pay. Subsequent monthly installments shall be payable on the 30th day of each succeeding month, ceasing with the installment due on the 30th day of the month in which the Participant (or other Contingent Annuitant) dies. If the Participant dies within the first 15 days of the month, the final payment shall be 1/2 of the normal monthly amount; otherwise, the final payment shall be the full monthly amount.

7.02 - Upon the election of the Participant, or the Participant's Surviving Spouse if benefits are payable only to the Surviving Spouse, the Early Retirement Benefit shall commence on the 30th day of the month which includes the Participant's Early Retirement Date, or the month in which the Participant elects early payment, whichever is later. In such event the amount of the benefit, including the Supplemental Spouse Pension, if applicable, shall be reduced by a percentage calculated as follows:

0% if the Participant had attained age 60 and completed 10 years of Vesting Service on the Participant's Early Retirement Date;
5/12% times the number of months that the actual date of the first payment precedes the 30th day of the month in which the Participant would attain age 60, if the Participant had completed 10 years of Vesting Service on the Participant's Early Retirement Date but had not attained age 60; or
1/3% times the number of months that the actual date of the first payment precedes the Participant's Normal Retirement Date, if the Participant had not completed 10 years of Vesting Service on the Participant's Early Retirement Date.

the Participant's attainment of age 60,
the Participant's completion of 30 years of Continuous Service (excluding periods of layoff and temporary suspension of employment), and
the date on which the Participant's age plus Continuous Service (excluding periods of layoff and temporary suspension of employment) would have totaled at least 80 years.

7.03 - The Participant may elect commencement of the Vested Benefit on the 30th day of the month which includes the Participant's earliest Early Retirement Date, or the 30th day of any month thereafter, but the amount of the Vested Benefit shall be reduced by the percentage equal to 1/3% times the number of months that the date of pension commencement precedes the Participant's Normal Retirement Date, and shall not be less than a Vested Benefit determined by applying the early retirement reduction factors set out in Section 7.02 above.

Notwithstanding any other provision herein, the Vested Benefit for an eligible Participant hereunder shall not be paid until the Participant has properly completed and filed with the Trustees a timely written application for the benefit on the form provided for such purpose by the Trustees.

7.04 -

"Normal Form of Payment" The retirement benefit payable under Sections 7.01, 7.02 and 7.03 shall be determined according to the normal form of pension and is payable in that normal form of pension unless the automatic form of pension applies under Section 7.04(b) or the Participant elects an optional form of pension.

The normal form of pension for a retirement benefit accrued by a Participant in respect of his Adjusted Credited Participating Service completed prior September 1, 2010 is a monthly annuity payable in the form of Life, Guaranteed Ten (10) Years. If the Participant dies before receiving 120 monthly payments, the payments shall be continued to the Participant's Beneficiary until a total of 120 such payments has been made.

The Normal form of pension for a retirement benefit accrued by a Participant in respect of his Adjusted Credited Participating Service completed on or after September 1, 2010 is a monthly annuity payable in the form of Life Only, so that, should the Participant die payments will cease.

The retirement benefit payable under Sections 7.01, 7.02, and 7.03 accrued by a Participant in respect of his total Adjusted Credited Participating Service shall be determined in accordance with this Section 7.04 on a combined basis based on the normal form of pension in effect on and after September 1, 2010; the retirement benefit accrued by the Participant in respect of his Adjusted Credited Participating Service completed prior to September 1, 2010 shall be adjusted accordingly.
"Automatic Form for a Participant With a Spouse" For a Participant who has a Spouse on the date on which pension payments commence, the pension will be paid in the form of a Surviving Spouse Annuity, unless the Participant and the Participant's Spouse confirm the waiver of the Surviving Spouse Annuity form in the manner specified in Section 7.07.

7.05 - While payable, the Supplemental Spouse Pension shall be paid as an integral part of the benefit otherwise payable to or with respect to the Participant. The Supplemental Spouse Pension shall not be subject to the Preretirement Surviving Spouse Benefit or the Surviving Spouse Annuity requirements hereunder and shall not be considered in calculating the value of either of those benefits.

7.06 - The Preretirement Surviving Spouse Benefit shall be paid at the time specified in Section 6.05, subject to the applicable rules, including the appropriate reduction for early payment, as specified in Sections 7.01, 7.02 and 7.03.

The benefit described in Section 6.05 shall be paid under either of the following circumstances:

If the Participant has retired under the Normal or Early Retirement provisions and dies prior to the date of the first benefit payment hereunder; or
If the Participant has a Vested Percentage of 100% and dies, whether or not employed by a Participating Employer at the time of death, prior to the commencement of benefit payments hereunder.

7.07 - When the Surviving Spouse Annuity is specified as the automatic form of payment under Section 7.04(b), the Participant, with the consent of the Spouse, may elect not to receive benefits in the Surviving Spouse Annuity form but to receive instead a monthly pension in the form of Life, Guaranteed Ten (10) Years or another optional form under Section 7.08. The election must be made within the 90-day period ending on the date benefit payments would begin.

The Administrator shall provide each Participant, within a reasonable period prior to the commencement of benefits, a written explanation of:

the terms and conditions of a Surviving Spouse Annuity;
the Participant's right to make, and the effect of, an election to waive the Surviving Spouse Annuity form;
the rights of a Participant's Spouse; and
the right to make, and the effect of, a revocation of a previous election to waive the Surviving Spouse Annuity form.

An election not to take a Surviving Spouse Annuity form of payment must be delivered to the Administrator in writing in the form prescribed under the Pension Benefits Act and must have the consent of the Participant's Spouse in the presence of a witness. A revocation of a prior election may be made by a Participant with the consent of the Spouse at any time before the commencement of benefits. The number of revocations shall not be limited. Any new election or change of Beneficiary will require a new spousal consent.

7.08 - In lieu of the normal form of payment, a Participant may elect an optional form of benefit under (a), (b) or (c) below:

Life Guaranteed Five (5), (10) or Fifteen (15) Years Options. A Participant may elect a Life Guaranteed Five (5), (10) or Fifteen (15) Years Option so that, should the Participant die before the Participant has received either 60, 120 or 180 monthly payments of pension benefits, the payments shall be continued to the Participant's Beneficiary until a total of either 60, 120 or 180 such payments has been made.
Joint and Surviving Spouse Option. A Participant may elect a joint and surviving spouse option in respect of Spouse or former Spouse. Benefits payable under this option shall consist of an Actuarially Equivalent amount of pension payable during the lifetime of the Participant and continuing after the Participant's death in an amount equal to 50%, 60%, 66-2/3%, 75% or 100% of such amount during the remaining lifetime of a Surviving Spouse or former Spouse. The percentage to be continued to the Surviving Spouse or former Spouse after the death of the Participant must be designated by the Participant at the time this option is elected.
Contingent Annuitant Option. A Participant may elect a Contingent Annuitant option. Benefits payable under this option shall consist of an Actuarially Equivalent amount of pension payable during the lifetime of the Participant and continuing after his death in an amount equal to 50%, 60%, 66 2/3%, 75% or 100% of such reduced amount during the lifetime, or eligible survivor period, as applicable, of a surviving contingent annuitant. The contingent annuitant and the percentage to be continued to the contingent annuitant after the death of the Participant must be designated by the Participant at the time this option is selected. A Participant may designate as his contingent annuitant his Spouse or former Spouse in respect of a pension which is in an amount equal to 50%, 60% 66-2/3%, 75% or 100% or a Participant may designate his dependent (as such term is defined in the Income Tax Act) in respect of a pension which is in an amount equal to 66 2/3%, 60% or 50% of the Participant's pension amount.
Pop-Up feature. A Participant who elects an optional form of benefit under (b) or (c) above may also elect to add a pop-up feature which, in the event that the Spouse (or former Spouse or Contingent Annuitant as the case may be) predeceases the Participant, restores the pension benefit amount to such amount that would be payable under the normal form of payment for the remainder of the Participant’s lifetime.

The pension benefit under any of the above options will be Actuarially Equivalent to the normal form of pension benefit otherwise payable to the Participant pursuant to Section 7.04. For a Participant who has a Spouse, election of an option shall be effective only if the Participant and his Spouse elect not to take the benefit in the form of the Surviving Spouse Annuity in the manner specified in Section 7.07 at the time of election of the option and confirm the waiver of the Surviving Spouse Annuity form in the manner specified in Section 7.07 within the 90-day period described therein.

The optional forms of payment described in the above are not available to the Surviving Spouse or other contingent beneficiary.

No option shall become effective prior to the earlier of the Participant's Normal Retirement Date and the commencement of his pension hereunder.

No optional form of pension shall be allowed which would reduce the Actuarially Equivalent present value of the pension expected to be paid to the Participant below 50% of the Actuarially Equivalent present value of the pension otherwise payable to or with respect to the Participant unless the optional form of benefit payment is the Joint and Surviving Spouse Option.

No election of any optional form of pension shall affect the payment of the supplemental benefit described in Section 6.03.

7.09 - The Minimum Benefit, if applicable, shall be paid in a lump sum to the Beneficiary as soon as administratively feasible.

7.10 - Notwithstanding any other provision herein, a lump sum payment of the Commuted Value of the Accrued Benefit for a Participant whose employment has terminated for any reason other than death or of the benefit payable to the Surviving Spouse in the event of the death of a Participant shall be paid to the Participant or Surviving Spouse if the Participant has a Vested Percentage of 100% and if the Participant's Accrued Benefit, expressed as an annual amount, does not exceed 2% of the Y.M.P.E. in the year of the Participant's retirement, termination or death, or such other amount as may be permitted in accordance with the Pension Benefits Act. In lieu of the lump sum payment, the Participant or the Surviving Spouse may transfer the amount to his or her personal registered retirement savings plan. The lump sum payment is in full satisfaction of the Participant's entitlement to a pension under the Plan.

Notwithstanding the foregoing, in respect of a Participant who is employed in a province other than Ontario, or in respect of the Participant's Surviving Spouse, a lump sum payment of the Commuted Value of the Accrued Benefit shall be payable in accordance with this Section 7.10 but subject tot the applicable provincial pension legislation (and as may otherwise be permitted in accordance with such legislation from time to time), as follows:

Alberta Participants
Effective August 10, 2006, if the Participant's Accrued Benefit, expressed as an annual amount, does not exceed 4% of the Y.M.P.E. or the Commuted Value does not exceed 20% of the Y.M.P.E. in the year a determination is required the Participant may elect to receive the lump sum payment or transfer that amount to a personal registered retirement savings plan in full satisfaction of the Participant's entitlement under the Plan. An Alberta Participant who joins the Plan on or after August 10, 2006 and to whom Section 7.10(a) or Section 8.04 applies, may be requested to transfer his Accrued Benefit from the Plan on a locked-in-basis in accordance with Section 5.06 or Section 5.07, as applicable.
British Columbia Participants
Effective July 15, 1999, if the Participant's Accrued Benefit, expressed as an annual amount, does not exceed 10% of the Y.M.P.E. or the Commuted Value does not exceed 20% of the Y.M.P.E. in the year of the Participant's retirement, termination or death, the Participant may elect to receive the lump sum payment or transfer that amount to a personal registered retirement savings plan in full satisfaction of the Participant's entitlement under the Plan.
Manitoba Participants
Effective September 1, 1998, if the Participant's Accrued Benefit, expressed as an annual amount, does not exceed 4% of the Y.M.P.E in the year of the Participant's retirement, termination or death, the Participant may elect to receive the lump sum payment or transfer that amount to a personal registered retirement savings plan in full satisfaction of the Participant's entitlement under the Plan.
Saskatchewan Participants
Effective June 1, 2005, if the Participant's Accrued Benefit, expressed as an annual amount, does not exceed 4% of the Y.M.P.E. or the Commuted Value does not exceed 20% of the Y.M.P.E. in the year of the Participant's retirement, termination or death, the Participant may elect to receive the lump sum payment or transfer that amount to a personal registered retirement savings plan in full satisfaction of the Participant's entitlement under the Plan.
Prince Edward Island Participants
Effective September 1, 1998, if the Participant's Accrued Benefit, expressed as an annual amount, does not exceed 2% of the Y.M.P.E. in the year of the Participant's retirement, termination or death, the Participant may elect to receive the lump sum payment or transfer that amount to a personal registered retirement savings plan in full satisfaction of the Participant's entitlement under the Plan.

7.11 - Except as otherwise provided with respect to the Preretirement Surviving Spouse Benefit and the Surviving Spouse Annuity, the requirements of this Section 7.11 shall apply effective September 1, 1986 (except where otherwise noted), to all payments and distributions of a Participant's benefits under Sections 6 and 7.

Limits on Settlement Options
Distributions, if not made in a lump sum, may only be made over one of the following periods or a combination thereof:

The life of the Participant;
The life of the Participant and a designated Beneficiary.

Commencement of Benefits
Effective January 1, 2007, distribution to a Participant must begin no later than the December 1 of the calendar year in which the Participant attains age 71, or such other age limit permitted under the Income Tax Act.
Death Distribution Requirements

If the Participant dies after payment of benefits has commenced, the remaining portion will continue to be distributed at least as rapidly as under the method of payment being used prior to the Participant's death.
If the Participant dies before payment of benefits commences, the Participant's entire interest will be distributed no later than five years after the Participant's death except that if any portion of the Participant's interest is payable to a designated Beneficiary who is not the Participant's Spouse, distributions shall be made in one lump sum.

7.12 - Notwithstanding any other provision herein, in the event a Person who is receiving a pension from the Plan, or a former Participant who is entitled to a defined Vested Benefit under the Plan, has an illness or physical disability that is likely to shorten his or her life expectancy to less than two (2) years, the Person or former Participant shall be permitted to apply for a withdrawal from the Trust Fund of the Commuted Value of the Person’s pension or defined Vested Benefit, provided:

an application for a withdrawal which has been signed by the Person or former Participant is submitted to the Employer;
the application is supported by the following documentation:

a statement signed by a medical doctor licensed to practice in Canada that the Person or former Participant has an illness or disability that is likely to shorten his or her life expectancy to less than two years;
a signed declaration by the Person’s or the former Participant’s Spouse providing a consent to the withdrawal, or where the Person or former Participant does not have a Spouse, a statement signed by the Person or former Participant that he or she does not have a Spouse, or is living separate and apart from such Spouse at the date the application to the Employer is made; and

the spousal declaration in support of the application described in Section 7.12(b)(ii) is received by the Employer within sixty (60) days of its being signed.

7.13 - Non-Resident Commutation An Alberta or British Columbia Participant who has terminated Continuous Service or has retired and who has been determined to be a non-resident of Canada for the purposes of the Income Tax Act, may elect to withdraw or transfer his Accrued Benefit on a non-locked-in basis, provided the Participant’s Spouse has completed the prescribed waiver.”