Benefits Handbook

A Grandfathered SRP Benefit is considered a small benefit if your vested accrued SRP benefit, including both a Grandfathered SRP Benefit and 409A SRP Benefit, would provide a monthly benefit payment that is less than $100 per month. For the purpose of determining a small benefit, the monthly benefit payment is assumed to be a single life annuity commencing at age 65.

If your Grandfathered SRP Benefit is a small benefit, you will receive a single sum payment that is actuarially equivalent to your Grandfathered SRP Benefit. The single sum payment will be paid as soon as practicable following your termination of employment.

While the amount of the 409A SRP benefit is considered when determining if a Grandfathered SRP Benefit is a small benefit, the 409A SRP Benefit will not be considered a small benefit unless it is determined to be a small benefit under the Small Benefit rule for a benefit that is subject to Section 409A. See "409A SRP Benefit Small Benefit Payment Rule" for details.

For example, Richard terminates employment with a total Vested Accrued SRP benefit that would pay a monthly benefit for his life only, commencing at age 65 of $90 per month of which $50 per month is attributable to his Grandfathered SRP Benefit and $40 per month is a 409A SRP Benefit. Because Richard's total vested accrued SRP benefit would pay a monthly annuity that is less than $100 per month, his Grandfathered SRP Benefit ($40 per month) is a small benefit. Richard will receive a single sum payment that is the actuarial equivalent of a monthly annuity payable for his life only and commencing at age 65 of $40 per month. The single sum payment will be made as soon as practicable following Richard's termination of employment.

For details on the interest rate used to calculate the single sum payment made if a Grandfathered SRP Benefit is a small benefit under the Small Benefit Payment rule for a Grandfathered SRP Benefit, see "Interest Rate to Calculate Single Sum Payments."

For a description of how the Grandfathered SRP Benefit is determined see "Determining the Grandfathered SRP Benefit."