The following assumptions were used and are for illustration only. You are assumed to be vested in both the frozen traditional benefit (5 years of service) and the new variable benefit (3 years of service) when you retire (if not already). You must be vested to receive retirement benefits. The assumed hourly contribution rate is $7.18/hour for all future hours worked. You are assumed to work until the end of the year you plan to quit working and retire at the end of the year in which you plan to retire. To the extent the actual rate contributed is different, your benefit at retirement will be different. Benefits will depend on actual hours worked, the hourly contribution rate, operating costs of the plan, and plan investment returns.
Variable historical investment returns are based data from the Ibbotson SSBI 2014 Classic Yearbook for a model portfolio invested in 70% Large Company Stocks (the S&P 500) and 30% Long Term Corporate Bonds. The returns have been reduced by 50 bps per year to reflect expected investment management expenses. Past returns are not necessarily indicative of future performance, nor are the Trustees obligated to follow an investment strategy that matches this model portfolio.