State Farm Insurance Companies
Retirement Plan for U.S. Employees
Summary Plan Description
Effective January 1, 2024
Retirement Plan for U.S. Employees
Summary Plan Description
2
Table of Contents
Introduction ................................................................................................. 4
Eligibility ...................................................................................................... 4
Who Is Eligible ........................................................................................................................ 4
Who Is Not Eligible ................................................................................................................. 4
Enrollment .................................................................................................. 5
Active Member ....................................................................................................................... 5
Plan Membership .................................................................................................................... 5
Vested Interest ....................................................................................................................... 5
Changes in Employment Status .............................................................................................. 6
Benefits ....................................................................................................... 7
Benefit Formula ...................................................................................................................... 8
Compensation ........................................................................................................................ 8
Average Annual Compensation .............................................................................................. 9
Covered Compensation .........................................................................................................10
Credited Service ....................................................................................................................11
When Benefits Begin ................................................................................ 12
Electing Retirement ...............................................................................................................12
Early Retirement Benefits ......................................................................................................12
Normal Retirement Date ........................................................................................................13
Deferred Retirement Benefits ................................................................................................13
Required Minimum Distribution Date .....................................................................................13
Distributions .............................................................................................. 14
Retirement Income Options ...................................................................................................14
Value of Benefit $7,000 or Less .............................................................................................16
Disability Benefits ..................................................................................... 17
Disability Benefit Options .......................................................................................................17
Survivor Benefits ....................................................................................... 18
Beneficiary .............................................................................................................................18
Amount of Survivor Benefit ....................................................................................................18
Claims and Appeals Procedures ............................................................... 19
Claims Procedures ................................................................................................................19
Denial of a Claim ...................................................................................................................20
How to Appeal a Denied Claim ..............................................................................................20
Review of Claim Appeals .......................................................................................................20
Retirement Plan for U.S. Employees
Summary Plan Description
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Miscellaneous ........................................................................................... 21
Statements ............................................................................................................................21
Benefit Adjustment ................................................................................................................21
Benefits Payable to Incompetents .........................................................................................21
Assignments ..........................................................................................................................21
Top Heavy Provisions ............................................................................................................22
Alight Protection Program™ ..................................................................................................22
Alight Account Lock Feature ..................................................................................................22
Administrative Information ........................................................................ 22
Official Plan Document ..........................................................................................................22
Modification or Termination of the Plan ..................................................................................23
Rules and Regulations...........................................................................................................23
Benefits Insured.....................................................................................................................23
Additional Information ............................................................................................................24
Summary Plan Description ....................................................................... 24
Your Rights under ERISA ......................................................................................................27
Appendix A: Retirement Plan Calculation Tables ...................................... 29
2024 Covered Compensation Table ......................................................................................29
Appendix B: Income Option Adjustments .................................................. 31
Option B – Life Income with 10 Years Certain .......................................................................31
Option C – Joint Life with 75% to Survivor .............................................................................31
Option D – Life income with 50% to Beneficiary ....................................................................34
Retirement Plan for U.S. Employees
Summary Plan Description
4
Introduction
The State Farm Insurance Companies Retirement Plan for United States Employees (“Plan” or
“Retirement Plan”) provides a defined pension benefit to eligible employees, based on the plan
terms and the Employee’s years of credited service and compensation. State Farm pays the full
cost of this plan. The Plan constitutes a pension benefit plan under the Employee Retirement
Income Security Act of 1974, as amended ("ERISA").
This Summary Plan Description presents in condensed form the main features of the
Retirement Plan as of the stated date. Please note the terms of the Retirement Plan have been
amended through the years and that the prior provisions control for those respective years. This
summary is provided for information purposes only and is not a contract of employment. It does
not cover all provisions, limitations, and exclusions.
In the case of a conflict between the information presented here and the plan, the terms of the
applicable plan shall govern. A complete copy of the Retirement Plan may be obtained from the
State Farm Benefits Center.
Eligibility
Who Is Eligible
Eligible Active Employees
You are eligible to become a participant in the Plan if, based on the payroll records of State
Farm Mutual Automobile Insurance Company (“State Farm” or the “Company”), you are
employed by State Farm (or one of the participating Companies) and your most recent hire or
rehire date is prior to January 1, 2021.
Employees hired on or after January 1, 2021, will not be eligible for this Plan.
Employees rehired on or after January 1, 2021, will not be eligible to accrue further benefits
under this Plan. If the Employee was eligible for a benefit immediately prior to the rehire, the
Employee remains eligible for that benefit.
Who Is Not Eligible
Employees who are hired, rehired, or otherwise become employed by State Farm (or one of the
participating Companies) on or after January 1, 2021, will not be eligible for this Plan.
In addition, you are not eligible for coverage under the Plan and are excluded from participation
if you fit any of the following descriptions, regardless of whether such individual is determined to
be an employee of any of the Companies under common law, statute, or any other test of
employment status:
• Any director (unless otherwise employed by the Companies);
Retirement Plan for U.S. Employees
Summary Plan Description
5
• Any person whose terms and conditions of employment are determined by a collective
bargaining agreement between the Companies and a labor union which does not make
the Plan applicable to them;
• Any person holding a State Farm Agent’s Agreement with any of the Companies or any
employee of such person;
• Any individual performing services for the Companies who is classified as an external
associate per the Companies’ records, including but not limited to any external claim
resource, any external resource of any kind, any contingent worker, any leased
employee or any person otherwise operating or performing under a service provider
agreement. The term “leased employee” means an individual who is a “leased
employee” within the meaning of Section 414(n)(2) of the Internal Revenue Code and
any other person who provides services to the Companies pursuant to an agreement
between the Companies and a leasing organization or similar organization; or
• Any Employee operating under a Staff Assistance Agreement.
Enrollment
There is no enrollment process. Eligible employees (“Employees”) automatically become active
plan members and have a vested benefit upon satisfaction of the below rules.
If employment ends before the Employee vests, all pension benefits are forfeited at termination.
Active Member
An eligible active Employee whose most recent hire or rehire date is prior to January 1, 2021.
Plan Membership
Effective September 1, 1985, an eligible Employee becomes an Active Member in the Plan on
the day the Employee completes one year of service or attains age 21 (if later).
Year of service means 365 days of State Farm service. Day of service means each day
beginning with the first day of employment and ending on the date of termination. This does not
include gaps in employment of more than 365 days, but includes gaps of shorter duration.
If you terminate your employment after becoming a Plan member, you will no longer be an
Active Member.
Vested Interest
In General
Having a vested interest means you have a non-forfeitable right to your retirement income and
pre-retirement survivor benefit, based on the retirement income you have accrued as of your
effective date of benefit. A member has a vested interest on the earlier of:
• The date that he or she completes five years of service after age 18; or
• The day an Active Member attains age 65 with at least one year of service.
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Other Service
Service in the following positions may be counted for purposes of Plan Membership and
Vesting, but not for purposes of Credited Service:
• Former Employee of Trainee Agent or Agency Manager;
• Trainee Agent prior to October 1, 1995;
• Former Employee of Quanata, LLC (formerly BlueOwl LLC), HiRoad Assurance
Company, or GAINSCO, Inc.; or
• Any person who is not a State Farm employee but who provides services to State Farm
if:
o Such services are provided pursuant to an agreement between the State Farm
and another organization; and
o The work was performed under the primary direction and control of State Farm
(what was done and how it was done); and
o Such person has performed such services to State Farm on a substantially full-
time basis (at least 1,500 hours of service) during any consecutive 12-month
period. (Must have hours worked in each month of that 12-month period).
Employees must provide the Plan Administrator with required documentation.
Changes in Employment Status
Gap in Employment
If you terminate employment and are subsequently reemployed, time during your period of
separation of employment:
• Counts as service for Plan membership and vesting, if your period of separation is 365
days or less.
• Does not count as service for Plan membership and vesting, if your period of separation
exceeds 365 days.
• Does not count as Credited Service used to determine the amount of your benefit.
• Does not count as Credited Service used to determine your eligibility for a disability
benefit.
In the event that the period of separation from employment is a maternity or paternity absence,
the number "365" for the period of separation referenced above is replaced by the number
"730".
Effect on Previously Accrued Benefits
If you previously left employment before vesting and are rehired by the Companies, the Credited
Service you forfeited and the Normal Annual Retirement Income based on that Credited Service
will be reinstated on your date of rehire.
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If you received a cash-out (the present value of your benefit at prior termination was $7,000 or
less; prior to 2024 this was $5,000 or less):
• In general, the Credited Service you forfeited and the Normal Annual Retirement Income
based on that Credited Service will generally not be reinstated on your date of rehire.
• If the cash-out was more than two years after the year in which you terminated, your
Credited Service will be reinstated but there will be an offset for the lump sum
distribution you previously received. For an Employee who rehires on or after January 1,
2021, Credited Service will not be reinstated.
If you have a vested accrued benefit that was not cashed out and you were rehired prior to
January 1, 2021, any future Credited Service will be added to the previous Credited Service. For
an Employee who rehires on or after January 1, 2021, there will be no future Credited Service.
Effect on Those Receiving Payments
If you are rehired from a retired status (i.e., you are receiving regular retirement distributions),
the impact to your benefits under the Plan depends on how you are employed:
• If you are re-employed on a part-time basis, your benefit payments under the Plan will
continue.
• If you are re-employed on a full-time basis, your distributions will stop.
• If you are re-employed within 90 days of your Effective Date of Retirement, on a full-time
or part-time basis, you will be treated as though you never retired. You will be asked to
repay any benefit payments made and no further benefit payments will be made until
your subsequent retirement date.
Employees working on a part-time basis and the employees working on a full-time basis may
accrue additional benefits to the extent permitted under the Plan. At the full-time employee’s
new retirement date or the part-time employee’s termination of employment, the benefit
calculated will be reduced by the actuarial equivalent of any payments made to the employee
while he or she was retired. Such benefit will not be reduced below the benefit calculated prior
to the member’s reemployment, determined under life income option basis.
If you are eligible for an increase upon subsequent termination from part-time employment, you
are eligible for a new retirement election on the additional accrued benefit.
Benefits
The Company makes all contributions to the Plan; Employees do not make any contributions.
The benefit provided under the Plan is based on the Benefit Formula. While the formula
calculates the benefit to be paid as a life income (Option A below) at age 65, there is no
reduction for benefits beginning after age 62. Reduced benefits are available as early as age
55.
The formula contains a number of defined terms. These terms are defined below. There are
examples after the defined terms.
Retirement Plan for U.S. Employees
Summary Plan Description
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Benefit Formula
Generally, your Normal Annual Retirement Income is:
• 1.3% of the portion of your Average Annual Compensation up to your Covered
Compensation multiplied by years of Credited Service up to 35; and
• 1.75% of the portion of your Average Annual Compensation that is in excess of your
Covered Compensation multiplied by years of Credited Service up to 35 years.
Normal Annual Retirement Income
Normal Annual Retirement Income is the annual benefit as determined under the Life Income
distribution option.
Compensation
Compensation generally means Form W-2, Box 1 Wages for the current year, increased by
elective contributions to the Flexible Compensation Plan and the 401(k) Savings Plan, and
reduced by the following items, if these items were included in wages:
• Reimbursements or other expense allowances;
• Fringe benefits (including but not limited to trips and merchandise awards);
• Moving expenses;
• Deferred compensation;
• Welfare benefits;
• Settlement payments;
• Incentive awards that are paid early due to termination or retirement;
• Incentive awards that are based on a multiple-year performance measure other than
payment for up to 850 units in the Long Term Incentive Plan (LTIP); and
• Pay for unused or accrued time-off benefits*.
*The reduction for the payout of unused or accrued time-off benefits does not apply to members
who are part of the grandfathered group described below. Those who meet all of the following
criteria may have up to 123 days of time-off benefits counted in Compensation:
• On December 31, 2006, the member was at least age 50;
• On December 31, 2006, the member was either an active Employee or an active agent
operating under a State Farm Agent’s Agreement;
• Since December 31, 2006, the member has worked continuously with the Companies as
an Employee or agent;
• Since December 31, 2006, the member has not received a prior payment of unused or
accrued time-off benefits due to termination of employment or movement from full-time
to part-time employment; and
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Summary Plan Description
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• At the time of retirement, the member is not a participant in the Long Term Incentive
Plan.
No Compensation will be recognized for an employee whose most recent hire or rehire date is
on or after January 1, 2021.
Compensation is subject to an annual Internal Revenue Code compensation limit:
Year
Compensation Limit
2015
$265,000
2016
$265,000
2017
$270,000
2018
$275,000
2019
$280,000
2020
$285,000
2021
$290,000
2022
$305,000
2023
$330,000
2024
$345,000
Examples – Compensation
The following provides examples of specific types of dollars that are included or not included as
Compensation for Retirement Plan purposes. This list is not an all-inclusive list.
• Included: Regular pay, 401(k) Savings Plan contributions, Flexible Compensation Plan
contributions, overtime, shift differential, enterprise incentive plan, past performance
cash, catastrophic differential pay, recognition bonuses, and most other monetary
incentive payments.
• Not Included: Reimbursements (such as for textbook fees), expense allowances (such
as spouse's travel expenses), fringe benefits (such as education awards, anniversary
gifts), moving expenses (such as relocation allowances and marketing incentive
bonuses), deferred compensation, settlement payments, welfare benefits (such as
severance pay) and pay for unused on accrued time off benefits (unless grandfathered).
Average Annual Compensation
Average Annual Compensation is calculated by first determining the period during which the
member’s annual Compensation amounts for any 1,825 consecutive days of Credited Service is
the highest. Once the period is determined, Average Annual Compensation is calculated by
averaging, over such period, the sum of the member’s Compensation less incentive awards and
the highest 5 consecutive incentive awards paid in the years counted in the 1,825-day period.
Example – Average Annual Compensation Calculation
Participation Date: May 1, 1989
Termination Date: July 31, 2024 (Age 62 with 35 years of credited service)
Pensionable Earnings:
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Summary Plan Description
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Plan Year
Base
(compensation paid
less incentive)
Incentive
Total
2019*
$47,000
$4,000
$51,000
2020
$50,000
$5,000
$55,000
2021
$52,000
$5,500
$57,500
2022
$54,000
$4,200
$58,200
2023
$56,000
$5,300
$61,300
2024*
$35,000
$6,000
$41,000
*Portion of the year counted in the highest 1,825 consecutive days.
• Step 1: Determine the period during which the highest Annual Compensation for any
1825 consecutive days of credited service is paid. Compensation for any day is basically
the annual Compensation amount divided by the number of days of credited service in
the year. In this example, the period that will be used is August 1, 2019 through July 31,
2024.
The calculation uses a rolling 1,825 days so in the example above the calculation is
rolling backwards from July 31, 2024, using 212 days of 2024 and 153 days of 2019.
• Step 2: Taking the same period of credited service used in Step 1, calculate Average
Annual Compensation based on just base pay. In the above example, this result would
be: (($47,000 x 153 / 365) + 50,000 + 52,000 + 54,000 + 56,000 + 35,000) / 5 = $53,340.
• Step 3: The highest Annual Compensation for any 1825 consecutive days of credited
service was paid in the calendar years 2019 through 2024.
• Step 4: Sum the 5 highest consecutive years of incentive awards within the calendar
years determined in Step 3 and divide by this result by the number of years of credited
service. In the above example, the result would be ($5,000 + $5,500 + $4,200 + $5,300
+ $6,000) / 5, = $5,200.
• Step 5: Add the results from Steps 2 and 4 to determine the member's Average Annual
Compensation at termination.
The member’s Average Annual Compensation would be $58,540. This amount is used in the
benefit formula.
Covered Compensation
Covered Compensation is the average of the Social Security taxable wage bases in effect for
each year in the 35-year period ending with the calendar year in which you attain your Social
Security retirement age defined as follows:
Year of Birth
Social Security Retirement Age
Before 1938
65
Between 1938 – 1954
66
After 1954
67
See Appendix A: Retirement Plan Calculation Tables for the Covered Compensation table.
Retirement Plan for U.S. Employees
Summary Plan Description
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Credited Service
Your credited service is your time in the Plan. It is the amount of time used in calculating your
benefits. The maximum credited service you can have in the Plan is 35 years.
• Full-time: An Active Member employed full-time shall receive a day of credited service
for each day of Plan membership in the year. If an active member is on paid sick leave,
that time will be counted as credited service (but only up to one year).
• Part-time: Effective January 1, 2000, an Active Member employed part-time throughout
the plan year shall receive:
o 365 days of Credited Service for the Plan year, if the employee receives
compensation for 900 hours or more of service in the Plan year, or
o No Credited Service for the Plan year if the employee receives compensation for
less than 900 hours of service in the Plan year.
Employees hired or rehired on or after January 1, 2021, will not accrue any additional credited
service following that date.
Transfer between Full-Time and Part-Time
An Active Member who transfers between full-time and part-time employment during a Plan
Year shall receive Credited Service as follows:
• Full-time to part-time: For any month (or portion thereof) the member is employed full-
time, the member is deemed to have 190 hours of service. These hours are added to
actual part-time hours of service for which compensation was paid in the Plan year. If the
total compensation paid is for 900 hours or more, the member receives 365 days of
Credited Service. If the total is less than 900 hours, the member receives Credited
Service only for the days of full-time employment.
• Part-time to full-time: If the member had received compensation in the Plan Year for
900 hours of service at the time of the transfer to full-time, the member receives 365
days of Credited Service for the Plan year. Otherwise, once the employee moves to full-
time, periods of part-time employment during the same Plan year will be treated as full-
time for Credited Service purposes.
Example – Retirement Income Calculation
Average Annual Compensation is less than Covered Compensation
For a member born in 1962 and retires in 2024, at age 62:
Calculation Component
Calculation Amount / Outcome
Average Annual Compensation
$90,000
Covered Compensation
$114,744
1.3% of Average Annual Compensation
0.013 x $90,000 = $1,170
Years of Credited Service
35 years
Normal Annual Retirement Income
$1,170 x 35 = $40,950
Normal Monthly Retirement Income
$40,950 / 12 = $3,412.50
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Average Annual Compensation exceeds Covered Compensation
For a member born in 1962 and retire in 2024, at age 62:
Calculation Component
Calculation Amount / Outcome
Average Annual Compensation
$115,000
Covered Compensation
$114,744
1.3% of Average Annual Compensation up to
the Covered Compensation Limit
0.013 x $114,744 = $1,491.67
Average Annual Compensation Less Covered
Compensation
$115,000 – 114,744 = $256
1.75% of Average Annual Compensation in
excess of the Covered Compensation Limit
0.0175 x $256 = $4.48
Add calculated amounts
$1,491.67 + $4.48 = $1,496.15
Years of Credited Service
35 years
Normal Annual Retirement Income
$1,496.15 x 35 = $52,365.25
Normal Monthly Retirement Income
$52,365.25/12 = $4,363.77
When Benefits Begin
Electing Retirement
A vested member may start benefits as early as the first day of the month following the later of
attaining age 55, termination of State Farm employment, or date of receipt of notice of intent to
retire. This date shall be the member’s Effective Date of Retirement.
If a vested member terminates employment prior to age 55 (or terminates employment after age
55 and does not begin receiving retirement income), the member is eligible to receive reduced
Plan benefits beginning at age 55 or unreduced retirement benefits beginning at age 62.
If a vested member terminates employment on or after age 65, the member must begin
receiving retirement income with an Effective Date of Retirement which is the first day of the
month following termination of employment.
A member must initiate the start of retirement benefits prior to the elected Effective Date of
Retirement. The member should communicate the date on which he or she plans to retire to the
Record Keeper once he or she is within 90 days of retirement.
Contact the State Farm Benefits Center when you are ready to retire.
Early Retirement Benefits
If you have a vested interest, you may retire with a reduced benefit on the first day of any month
after your 55th birthday and before your 62nd birthday. There is no reduction in the benefit due
to early retirement after age 62. The Normal Annual Retirement Income accrued on your early
retirement date would be multiplied by an early retirement factor to account for receiving
payments prior to age 65.
The Option A – Life Income early retirement factors are stated below.
Retirement Plan for U.S. Employees
Summary Plan Description
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Age at Retirement
Early Retirement Factor
55
0.60
56
0.65
57
0.70
58
0.75
59
0.80
60
0.85
61
0.90
62
1.00
63
1.00
64
1.00
65
1.00
Pro rata adjustments will be made in these factors based upon your age in years and months on
the early retirement date.
If you are no longer employed by State Farm, your benefit under Life Income is the same
at age 62 and at age 65. If you delay commencement past age 62 you are losing those
past payments.
The monthly benefit amount will be further reduced based on the Income Option selected and if
applicable the age of your joint annuitant or beneficiary.
Normal Retirement Date
Your Normal Retirement Date is the first day of the month following your 65th birthday. For
example, if you reach age 65 on May 23, your Normal Retirement Date is June 1.
Deferred Retirement Benefits
Retirement benefits are considered deferred if you retire after you attain age 65.
If your Effective Date of Retirement is on or after April 1 following the year you attain 70 1/2, the
amount of your Normal Annual Retirement Income will be actuarially adjusted to account for the
period after age 70 1/2 in which you were not receiving any Plan benefits.
Required Minimum Distribution Date
The required minimum distribution date for an inactive member is April 1 following the year you
attain age 70 ½. Approximately 90 days prior to your required minimum distribution date you will
receive a reminder notice with information explaining your payment options. If you do not initiate
retirement prior to your required minimum distribution date your retirement will be processed by
default. If you are not legally married default will be based on the Life Income retirement option.
If legally married default will be based on Life Income with 50% to Beneficiary.
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Distributions
The Plan provides retirement benefits. However, if you become disabled and meet certain
criteria, you may be eligible for disability benefits under the Plan. Further, if you die prior to
retirement, the Plan provides survivor benefits for your beneficiary.
Please note, if the present value of your Plan benefit is $7,000 (prior to 2024 it was $5,000) or
less at employment termination, the benefit will be distributed in one sum.
Retirement Income Options
Earlier sections described how your retirement benefit is calculated and how the benefit is
reduced if distributions begin between ages 55 and 62. This section explains the four different
Retirement Income Options choices that are available to you if the present value of your benefit
is more than $7,000.
The Retirement Income Options are:
• Option A – Life Income.
• Option B – Life Income with Ten Years Certain.
• Option C – Joint Life Income with 75% to Survivor.
• Option D – Life Income with 50% to Beneficiary.
These are described in more detail below. Regardless of your election, your first retirement
income payment is scheduled to be made the first business day of the month following your
Effective Date of Retirement.
Please note, if you are married on your Effective Date of Retirement you must elect Option C or
Option D with your spouse as the joint annuitant. To elect a different option or name someone
other than your spouse as the joint annuitant, your spouse must provide written consent.
The preceding Example – Retirement Income Calculation showed you how to calculate your
retirement income under Option A if you were age 62 or older at retirement. If you select one of
the other retirement income options, your monthly income will be different. Each option has the
same actuarial or relative value at the time benefits commence. This means the total amount
expected to be paid under each option, taking into account certain assumptions regarding
interest and mortality, is equal. Which option has the most value to you depends on how long
you and/or your joint annuitant/beneficiary (under Option C or Option D) continue to receive
benefits.
On your Effective Date of Retirement, your retirement income option election becomes
irrevocable. While you may cancel, revoke, or change your retirement income election at any
time prior to your Effective Date of Retirement, your election cannot be changed after your
Effective Date of Retirement.
The Record Keeper will provide you with a written explanation of the election and spousal
consent requirements within a reasonable time before your Effective Date of Retirement.
Important: In the event of your death or the death of a designated beneficiary, you (or, if
applicable, your beneficiary, family, or estate) must notify the State Farm Benefits Center
to report the death within 30 days, even if the payment option includes a continued
Retirement Plan for U.S. Employees
Summary Plan Description
15
payment to you or your beneficiary. The benefit payment may need to be
adjusted. Failure to report a death to the State Farm Benefits Center in a timely manner
may cause an overpayment of benefits that you or the estate will be responsible for
repaying.
Option A – Life Income
Monthly income is paid to you for your lifetime. Payment cease on your death.*
This option usually provides the maximum amount of monthly income.
Option B – Life Income with Ten Years Certain
Monthly income is paid to you for your lifetime.
If you die before payments have been made for a certain period equal to the lesser of ten years
or your life expectancy, payments in the same amount will continue to your designated
beneficiary for the remainder of such period. If neither you nor your designated beneficiary
survive to the end of the certain period, the present value of any remaining unpaid installments
will be paid to the estate or legal representative of either you or your designated beneficiary,
whoever dies later. However, if no designated beneficiary survives you by 30 days, any such
payment will be made to your estate or legal representative. If your designated beneficiary is a
trust and you do not survive to the end of the certain period, any remaining unpaid installments
will be paid in one sum. Subject to spousal consent, you have the right, both prior to your
Effective Date of Retirement and while receiving retirement income, to name a new beneficiary
in lieu of any beneficiary previously designated.
The amount of each monthly payment will be less than the Option A payment.
Option C – Joint Life Income with 75% to Survivor
Monthly income is paid jointly to you and your joint annuitant while both of you are living. When
either dies, the survivor receives income equal to 75% of the joint life income for the rest of his
or her life.*
Your designated joint annuitant must be either your spouse or a dependent. A person is
considered your spouse if you are legally married (as recognized under federal law) to him/her
on your Effective Date of Retirement. A dependent is someone who satisfies the relationship
test under Internal Revenue Code Section 152(d)(2) and for whom this unaltered benefit is
permitted (generally the person’s age is within 19 years of your age).
In most cases, the amount of each monthly joint life payment is less than the Option A payment.
If the Effective Date of Retirement was prior to January 1, 2008 Option C was Joint Life Income
with 2/3 to Survivor. Monthly income would be paid jointly to the member and his/her joint
annuitant while both are living. When either dies, the survivor receives a monthly income equal
to 2/3 of the joint life income for his/her remaining life.*
Option D – Life Income with 50% to Beneficiary
Monthly income is paid to you for your lifetime. If your beneficiary dies first, there is no
adjustment to the benefit. If you die first, monthly income equal to one-half of your monthly
income is paid to your Beneficiary for the rest of his/her life.*
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Summary Plan Description
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Your beneficiary must be either your spouse or a dependent. A person is considered your
spouse if you are legally married, as recognized under federal law, to him or her on your
Effective Date of Retirement. A dependent is someone who satisfies the relationship test under
Internal Revenue Code Section 152(d)(2) and for whom this unaltered benefit is permitted.
*Payment adjustments (payment reductions or final payment) under Options A, C, or D shall
occur as of the first day of the second month following death.
Value of Benefit $7,000 or Less
If you have a vested interest when you terminate employment and the present value of your
accrued benefit does not exceed $7,000, the Record Keeper will contact you with your options.
You can have this benefit either:
• Paid in a direct rollover to your IRA or other qualified plan; or
• Paid to you in cash, less applicable income tax withholding.
If you do not return a proper election form for benefit distribution and the present value of your
accrued benefit is $1,000 or less, at the time of distribution, your accrued benefit will be
distributed to you in cash, less applicable income tax withholding.
If you do not return a proper election form and the accrued benefit is greater than $1,000 and no
more than $7,000 at the time of distribution, the plan is required by law to make a direct rollover
of your accrued benefit to an IRA. Therefore, in this situation, your distribution will be processed
as an automatic rollover to an IRA in your name with Inspira Financial.
Your IRA account balance will be invested in an investment product designed to preserve
principal and provide a reasonable rate of return and liquidity. Any fees and expenses of the IRA
will be charged against the assets held in the IRA. At any time, you can redirect the investment
of this IRA, roll over the IRA assets to another IRA, or take a distribution from the IRA, subject to
any applicable tax consequences.
Contact the State Farm Benefits Center for further details regarding the Automatic Rollover
process, the Inspira Financial, and the fees and expenses applicable to the IRA.
Special Notice Regarding the Sharing of Certain Information for Automatic
Rollovers
This notice applies only to the sharing of information with Inspira Financial that does not involve
your transactions or experiences with us.
What Information We Share
Unless you affirmatively elect a different option in the event of an involuntary distribution, we
may share information with Inspira Financial that was obtained from your account, such as your
balance, your address, and your phone number; or information obtained from a consumer
report, such as your credit history and your Social Security Number.
Why We Share
We may share information about you with Inspira Financial to affect the rollover of your account
to a Inspira Financial IRA account.
Retirement Plan for U.S. Employees
Summary Plan Description
17
Disability Benefits
Disability Benefit Options
If you become a Disabled Member of the Plan, you may elect to receive monthly disability
income or to accrue additional credited service during the period you are a Disabled Member. If
you are approved for Social Security disability benefits send the Notice of Award letter to the
Record Keeper for review. If you are eligible the Record Keeper will send you a disability
election kit. You will have 90 days to make your election. If the election is not received within
the 90 days you will default to the accrual option.
If you become a Disabled member and elect to receive monthly disability income, the amount of
each payment is 1/12 of the Normal Annual Retirement Income accrued as of the date the
disability income is first payable.
If you elect monthly disability income, and are later approved for payments from State Farm's
Group Long-term Disability Plan, you may change your Retirement Plan disability election to
accrual. However, you must reimburse the Retirement Plan for any disability income it paid you.
Disabled Member
You are a disabled member on the first day of the calendar month following the date on which
all of the following requirements are met:
• You have completed five years of Credited Service prior to the Date of Disablement;
• Your age plus Credited Service equals at least 55 years prior to the Date of
Disablement;
• The Date of Disablement must occur during your most recent period of active plan
membership (An employee is not an Active Member if he/she was hired or rehired on or
after January 1, 2021.);
• You have been Totally Disabled for six consecutive whole months beginning on or next
following the Date of Disablement (ignoring temporary returns to work for brief periods
up to 30 days);
• You have terminated employment with the Companies; and
• You are eligible for and receiving Social Security disability benefits.
Date of Disablement
The Date of Disablement is the day on which the member becomes Totally Disabled as
determined by the Social Security Administration.
When Disability Benefits End
Payments of disability income or accrual of additional Credited Service will cease upon the
earliest of:
• Death;
Retirement Plan for U.S. Employees
Summary Plan Description
18
• Recovery from total disability;
• The day on which you cease to be eligible for Social Security disability benefits;
• The day on which your last Social Security disability benefit payment was due; or
• Retirement or reaching your Normal Retirement date. You will be required to complete
paperwork for regular retirement.
If you are totally disabled again within five years from the due date of your last disability
payment or the last day of your benefit accrual, the six-month waiting period is waived. If the
other above-stated requirements are met, you would become a Disabled Member on the first
day of the month on or next following the most recent Date of Disablement.
Survivor Benefits
A survivor income benefit is available if you die prior to retirement and you have a vested
interest. If you are receiving retirement income from the Plan, a survivor benefit is available only
to the extent provided by the retirement income option you selected.
Beneficiary
All beneficiary designations must be filed with the Record Keeper. Beneficiary designation forms
dated before January 1, 2016 are not valid.
You may designate a beneficiary by contacting the State Farm Benefits Center.
If you die prior to retirement, a survivor benefit will be paid to your spouse or, if you are not
married, the survivor benefit will be paid to your beneficiary. If there is no beneficiary, your
benefit will be paid to your estate.
Spouse means any individual who is lawfully married to a participant under state law.
You may name a contingent beneficiary in the event your spouse or other primary beneficiary
predeceases you.
Note: If a beneficiary designation is made, it is not effective unless a properly completed
Beneficiary Designation Authorization Form has been signed and returned to the Record
Keeper.
If you and your primary beneficiary die simultaneously (and there is no sufficient evidence it was
anything other than simultaneous), your beneficiary is considered to have predeceased you.
If you named your spouse as primary beneficiary and later divorce that spouse, he or she will no
longer be considered your beneficiary. If you want your ex-spouse to be your beneficiary, you
must update your Beneficiary Designation after the date of the divorce.
You should review your Beneficiary Designation from time to time, making appropriate
revisions for divorce and deaths.
Amount of Survivor Benefit
If the benefit is payable to a spouse or to an individual beneficiary, the survivor income shall be
payable to that individual for his or her life. The amount of the monthly payment will be the
Retirement Plan for U.S. Employees
Summary Plan Description
19
amount that would have been paid to the beneficiary under Retirement Income Option C as if
the beneficiary were the joint annuitant and as if the member had retired and died on the first
day of the month of death.
Payments shall begin as of the first of the month following the month of the member’s death. In
the event the beneficiary dies before payments have been made for a period of 5 years, the
present value of any remaining unpaid installments for such 5-year period shall be paid in one
sum to the estate or legal representative of the beneficiary.
If the present value of the survivor benefit does not exceed $7,000, the benefit will be paid in a
single sum. If the survivor benefit is payable to your spouse or to a non-spouse beneficiary, he
or she may choose, instead, to have the single sum survivor benefit paid directly to an IRA.
If the benefit is payable to multiple beneficiaries, the present value of the lifetime benefit
described above (assuming the beneficiary is the same age as the member) shall be divided
equally among all beneficiaries and paid to each in one sum. A non-spouse (individual)
beneficiary may choose to have the single sum survivor benefit paid directly to an IRA.
If the benefit is payable to a non-individual beneficiary, such as an estate or legal
representative, the present value of the lifetime benefit described above, assuming the
beneficiary is the same age as the member, shall be paid to the beneficiary in one sum.
Example – Survivor Benefit Calculation
The monthly survivor benefit is determined by first calculating the amount of monthly retirement
income that would have been paid to the member had he or she retired on the first day of the
month of death and elected Option C – Joint Life with 75% to Survivor. The survivor benefit
would be the 75% benefit under that option.
Calculation Component
Calculation Amount / Outcome
Employee
Age 50 on the 1st day of the month
Qualified Spouse
Two years younger than the employee
Accrued Normal Annual Retirement Income
$15,000
Option C Factor
0.3806 (See Appendix)
Monthly Joint Life Retirement Income
($15,000/12) x 0.3806 = $475.75
Monthly Survivor Benefits
$475.75 x 75% = $356.81
Claims and Appeals Procedures
Claims Procedures
To make an official claim under the State Farm claim procedures, you must contact the State
Farm Benefits Center and request a Claim for Benefit form. You must complete and return all
pages of the claim initiation form, including any documentation you feel supports the claim.
Benefits under the Retirement Plan will be paid only if the Plan Administrator decides, in its
discretion, that you are entitled to them. The determination process usually takes 60 business
days but no longer than 90 days after receipt of the claim. If special circumstances require an
extension of time for processing, you will be notified of the circumstances. A decision will be
made as soon as possible, but no later than 180 days after the date the original request was
received.
Retirement Plan for U.S. Employees
Summary Plan Description
20
Denial of a Claim
The Plan Administrator will provide written or electronic notification of any claim denial. The
notice will state:
• The reason or reasons for the denial;
• A reference to the specific Plan provisions on which the denial was based;
• A description of any additional material or information necessary for you to perfect the
claim and an explanation of why such material or information is necessary; and
• A description of the Plan's review procedures and the time limits applicable to such
procedures. This will include a statement of your right to bring a civil action under
Section 502(a) of ERISA following a denial on review.
How to Appeal a Denied Claim
If your claim is denied you may appeal the denial to the State Farm Pension Administrative
Committee, C/O Claims and Appeals Management, within 60 days from the date of this letter. If
you do not submit an appeal within this time period, you may not file an appeal for this claim at a
later date.
You may submit your appeal in writing to:
State Farm Pension Administrative Committee
C/O Claims and Appeals Management
Dept 01283
P.O. Box 299107
Lewisville, TX 75029-9107
In preparing your appeal, you have the right to receive, upon request and without charge,
reasonable access to or copies of any relevant documents, records, or other information relied
upon by Claims and Appeals Management in making this determination. If you have any
additional information or documentation to support your claim, you must submit it with your
appeal.
Review of Claim Appeals
Upon receipt of your claim for review, the State Farm Pension Administrative Committee will
make a decision no later than the date of the next meeting of the Pension Administrative
Committee after the request for review is received, unless it is received within 30 days of before
the meeting. If the request for review is received within 30 days before the next meeting, the
Pension Administrative Committee will make a decision no later than the second meeting of the
Pension Administrative Committee after the request for review is received. If special
circumstances require an extension of time for processing, a decision will be made no later than
the third meeting of the Pension Administrative Committee after the request for review is
received. The decision on review will be provided in writing no later than 5 days after the
decision is made and in a manner calculated to be readily understood and will include specific
reasons for the decisions, as well as specific references to pertinent Plan provisions on which
the decision is based.
Retirement Plan for U.S. Employees
Summary Plan Description
21
If the decision on review is not furnished within the time limits described in the preceding
paragraph, the claim shall be deemed to be denied on review.
The State Farm Pension Administrative Committee has full discretionary authority and power to
decide your appeal, and to interpret and construe the terms and provisions of the Plan and
determine questions of fact and law in deciding your appeal. The decision of the State Farm
Pension Administrative Committee is final and binding.
Your failure to file an appeal of the denial of your claim in the manner and within the time limits
provided for in the Plan and Summary Plan Description will be considered a failure to exhaust
your administrative remedies and will constitute a waiver of the rights and benefits you seek to
establish under the Plan.
If the State Farm Pension Administrative Committee denies your appeal, you have the right to
initiate a civil action in federal court under section 502(a) of the Employee Retirement Income
Security Act of 1974 (ERISA). This option is available to you only after you have exhausted all
of the administrative remedies available to you through the Plan’s claims and appeals process.
Miscellaneous
Statements
You may access information about your Retirement Plan benefit by contacting the State Farm
Benefits Center or by going online at www.statefarmbenefits.com.
By going online, you can use the available projection tool to estimate your retirement income.
Benefit Adjustment
Any adjustment or reimbursement required for any reason, including but not limited to
overpayments made in error, overpayments made following the death of one or more recipients,
or overpayments made by reason of the recipient's failure to provide relevant information, will be
made as the Plan Administrator deems equitable.
Benefits Payable to Incompetents
If any benefit or installment thereof becomes payable to any person who is a minor or is
otherwise not competent to give a valid release, the Record Keeper will direct the Trustee to
make payment to such person’s legal guardian or other legal representative. Any payment of a
benefit or installment thereof made in accordance with the provisions of this section shall
constitute a complete discharge of any liability for the making of such payment under the
provisions of the Plan.
Assignments
In General
As a general rule, your benefit may not be assigned. This means your interest in the Retirement
Plan may not be sold, used as collateral for a loan, given away or otherwise transferred. In
addition, your creditors may not attach, garnish, or otherwise interfere with your interest in the
Retirement Plan for U.S. Employees
Summary Plan Description
22
Plan. However, the Plan Administrator may comply with any federal tax levy made pursuant to
Code section 6331 and subject to the provisions of Code section 401(a)(13).
Qualified Domestic Relations Order
Notwithstanding the above anti-assignment rule, all or a portion of your interest in the Plan may
be used to satisfy a "qualified domestic relations order." A "qualified domestic relations order" or
"QDRO" is a court order or decree that obligates you to pay child support or alimony, or
otherwise allocates a portion of your interest in the Plan to support your spouse, former spouse,
child, or other dependent. A participant or beneficiary may obtain, without charge, a copy of the
Plan's QDRO procedures and model QDRO. You may request paper copies be mailed to you by
calling the State Farm Benefits Center at 1-866-935-4015 or by accessing the QO Center
website at www.qocenter.com. The Record Keeper will determine the validity of any domestic
relations order received.
Top Heavy Provisions
The Internal Revenue Code provides a set of rules for determining whether the Retirement Plan
is top heavy. In general, the plan is considered to be top heavy if the value of accrued benefits
belonging to key employees, generally officers, exceeds 60% of the total value of all accrued
benefits for all employees. Accelerated vesting and minimum benefits apply in any year the Plan
is determined to be top heavy.
Alight Protection Program™
Protecting your 401(k) benefits and personal information from fraud, cyber threats, and
unauthorized activity is a top priority for all of us. To help further safeguard your benefits and
information, Alight Solutions, our benefits administrator, introduced the Alight Protection
Program to reimburse losses due to fraud when you take the steps to help protect your account.
Go to the My State Farm Benefits Resource website to learn more about the eligibility
requirements, add your mobile number and choose to receive text messages from your benefits
account. You will find a link to the Security Center at the bottom of each page on the website for
additional detail regarding the Alight Protection Program.
Alight Account Lock Feature
Account Lock is a no-cost feature designed to help safeguard your retirement plan benefit and
prevent unauthorized users from accessing your money. Account Lock is a good option if you
will be traveling and/or unable to receive account alerts, are concerned that your logon
credentials may have been compromised, or want to add an extra layer of protection to your
account. To initiate Account Lock, go to the My State Farm Benefits Resource website and click
the “Account Lock” link (under the “My Profile” icon in the upper right corner)
Administrative Information
Official Plan Document
This summary provides general information about the Retirement Plan, who is eligible to receive
benefits under the Plan, what those benefits are, and how to obtain benefits. It is provided for
Retirement Plan for U.S. Employees
Summary Plan Description
23
information purposes only and is not a contract of employment. A copy of the Plan Document is
available upon request to the State Farm Benefits Center.
Modification or Termination of the Plan
The Compensation Committee of the Board of Directors reserves the right, in its sole and
unfettered discretion, to amend, modify or terminate the Retirement Plan at any time, in whole
or in part, without the consent of Plan participants and their beneficiaries; with subsequent
notice to the other participating companies. No amendment shall authorize or permit any part of
the Trust Fund to be used for or diverted to purposes other than for the exclusive benefit of the
Participants or their beneficiaries. Upon termination, you will become vested in your current
accrued benefit to the extent that it is funded. The Company may decide to continue the Trust
after termination and pay benefits out as if the Plan had not terminated; however, no further
benefits will be accrued. Otherwise, the Company may make distributions as soon as
administratively feasible and terminate the Trust as well.
Rules and Regulations
Benefits under this Plan will be paid only if the Plan Administrator decides in its discretion that
the person is entitled to them. The Plan Administrator shall have full and complete authority,
discretion, responsibility, and control over the management, administration, and operation of the
Plan, including, but not limited to, the authority and discretion to make all reasonable rules and
regulations required in the administration of the Plan and for the conduct of its affairs, to make
all determinations that the Plan requires for its administration, and to construe and interpret the
Plan whenever necessary to carry out its intent and purpose and to facilitate its administration.
All such rules, regulations, determinations, constructions, and interpretations made by the Plan
Administrator shall be binding upon the Companies and the employees and their beneficiaries,
and all other interested parties.
Benefits Insured
Your pension benefits under this plan are insured by the Pension Benefit Guaranty Corporation
(PBGC), a federal insurance agency. If the plan terminates without enough money to pay all
benefits, the PBGC will step in to pay pension benefits. Most people receive all of the pension
benefits they would have received under their plan, but some people may lose certain benefits.
The PBGC guarantee generally covers:
• Normal and early retirement benefits;
• Disability benefits if you become disabled before the plan terminates; and
• Certain benefits for your survivors.
The PBGC guarantee generally does not cover:
• Benefits greater than the maximum guaranteed amount set by law for the year in which
the plan terminates;
• Some or all of benefit increases and new benefits based on plan provisions that have
been in place for fewer than 5 years at the time the plan terminates;
• Benefits that are not vested because you have not worked long enough for the company;
Retirement Plan for U.S. Employees
Summary Plan Description
24
• Benefits for which you have not met all of the requirements at the time the plan
terminates;
• Certain early retirement payments (such as supplemental benefits that stop when you
become eligible for Social Security) that result in an early retirement monthly benefit
greater than your monthly benefit at the plan's normal retirement age; and
• Non-pension benefits, such as health insurance, life insurance, certain death benefits,
vacation pay, and severance pay. Even if certain of your benefits are not guaranteed,
you still may receive some of those benefits from the PBGC depending on how much
money your plan has and on how much the PBGC collects from employers.
For more information about the PBGC and the benefits it guarantees, ask your plan
administrator, or contact PBGC's Technical Assistance Division at the following address:
445 12th Street SW
Washington, DC 20024-2101
You may also call 202-326-4000 (not a toll-free number). TTY/TDD users may call the federal
relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4000. Additional
information about the PBGC's pension insurance program is available through the PBGC's
website on the Internet at http://www.pbgc.gov.
Additional Information
In order to ensure receipt of Plan communications following your separation from the Company,
you must update your phone number(s), home and/or mailing address, email address, and
mailing preferences on your account as changes occur. You can make these updates as well as
request distributions by contacting the State Farm Benefits Center at 866-935-4015 or go online
at www.statefarmbenefits.com.
If you have selected to have documents sent to your secure mailbox on the State Farm
Benefits Center website, it is important to keep your email address up to date since
notification of new documents is sent to the preferred email address on file.
For general questions about the Retirement Plan, please contact the State Farm Benefits
Center.
If this summary plan description contains any statements that disagree with the complete Plan
document, the Plan document shall govern.
You may examine Plan documents during normal business hours at the Human Resources &
Development Department, Corporate Headquarters. Upon written request to the State Farm
Benefits Center at Dept 01283, PO Box 299100, Lewisville, TX 75029-9100, copies of any or all
of the documents will be furnished to you at a reasonable charge. The Plan's records are
maintained on a calendar year basis, ending on December 31.
Summary Plan Description
The information contained in this document and the Summary Plan Description for the State
Farm Insurance Companies Retirement Plan for United States Employees constitute a
Retirement Plan for U.S. Employees
Summary Plan Description
25
Summary Plan Description recognized by the Employee Retirement Income Security Act of
1974 (ERISA §102).
Plan Information
Details
Name of Plan
State Farm Insurance Companies Retirement Plan for United
States Employees
Employer I.D. Number
37-0533100
Plan Number
001
Plan Sponsor
State Farm Mutual Automobile Insurance Company, One State
Farm Plaza, Bloomington, Illinois 61710-0001.
Type of Plan
Defined Benefit Plan
Effective Date
The current Plan is amended and restated effective January 1,
2024.
The original effective date was September 1, 1953. The Plan in
effect from September 1, 1953 through December 31, 1999 is
referred to as the Predecessor Plan. The provisions of the
Predecessor Plan shall control for those Plan Years.
Plan Year Ends
A calendar year beginning on January 1 and ending on
December 31
Plan Administrator &
Named Fiduciary
The Plan Administrator and Named Fiduciary is the Pension
Administrative Committee. The Pension Investment Committee
is the Named Fiduciary with respect to the asset operations.
Questions regarding participation should be directed to:
State Farm Benefits Center
Dept 01283
P.O. Box 299100
Lewisville, TX 75029-9100
1-866-935-4015
All communication concerning the Plan can be directed to the
address below or you may call the State Farm Benefits Center
at 1-866-935-4015.
Pension Administrative Committee
State Farm Mutual Automobile Insurance Company
One State Farm Plaza, C-1
Bloomington, IL 61710
1-309-766-2707
Type of Administration
Employer Administration
Retirement Plan for U.S. Employees
Summary Plan Description
26
Plan Information
Details
Plan Funding
The Plan is fully funded by the Company. Benefits are paid
from the State Farm Insurance Companies Employee
Retirement Trust.
All contributions to provide plan benefits are paid by State
Farm Mutual Automobile Insurance Company with costs
apportioned to the other participating Companies.
Contributions shall be sufficient to enable the Plan to satisfy
the minimum funding standards applicable to defined benefit
plans. You make no contributions. The assets of the Plan are
held in a trust fund.
Agent for Service of Legal
Process
Service of legal process may be made upon the Plan
Administrator, a Trustee, or the designated agent:
State Farm Insurance Company
Vice President-Human Resources & Development
One State Farm Plaza
Bloomington, Illinois 61710
Participating Companies
1. State Farm Mutual Automobile Insurance Company
2. State Farm Life Insurance Company
3. State Farm Life and Accident Assurance Company
4. State Farm Fire and Casualty Company
5. State Farm General Insurance Company
6. State Farm Indemnity Company
7. State Farm VP Management Corp.
8. State Farm Florida Insurance Company
9. State Farm International Holding Company
Record Keeper
Alight Solutions:
State Farm Benefits Center
Dept 01283
P.O. Box 299100
Lewisville, TX 75029-9100
1-866-935-4015
Trustees
Stacie Rood, Trustee
One State Farm Plaza
Bloomington, IL 61710-0001
Michael Roper, Trustee
One State Farm Plaza
Bloomington, IL 61710-0001
Retirement Plan for U.S. Employees
Summary Plan Description
27
Your Rights under ERISA
If you are a participant in the Retirement Plan, you are entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all
participants shall be entitled to the following.
Receive Information about Your Plans and Benefits
You may:
• Examine, without charge, at the Plan Administrator’s office and at other specified
locations, such as worksites, all documents governing the Plan and a copy of the latest
annual report (Form 5500 Series) filed for the Plan with the U.S. Department of Labor
and available at the Public Disclosure Room of the Employee Benefit Security
Administration.
• Obtain, upon written request to the Plan Administrator, copies of documents governing
the operation of the Plan and copies of the latest annual report (Form 5500 Series) and
an updated summary plan description. The administrator may make a reasonable
charge for the copies.
• Receive a summary of the annual financial report for the Plan. The Plan Administrator is
required by law to furnish each Participant with a copy of this summary annual report.
• Request in writing each year a statement which describes in-dollars-and cents terms-any
benefit you have accrued under the Plan. Specifically, this statement explains whether
you have a vested interest in (entitlement to) this accrued benefit. If you do not, it should
tell you how much longer you must work to become vested; whether or not you have
earned a right to receive benefits at retirement age. The Plan Administrator must
provide this statement free of charge.
Prudent Actions by Plan Fiduciaries
In addition to creating rights for plan participants, ERISA imposes duties upon the people who
are responsible for the operation of the employee benefit plan. The people who operate your
plans, called “fiduciaries” of the plans, have a duty to do so prudently and in the interest of you
and other plan participants and beneficiaries. No one, including your employer, or any other
person, may fire you or otherwise discriminate against you in any way to prevent you from
obtaining a welfare benefit, or exercising your rights under ERISA.
Enforce Your Rights
If your claim for benefits is denied or ignored, in whole or in part, you have a right to know why
this was done, to obtain copies of documents relating to the decision without charge, and to
appeal to any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request a copy of plan documents or the latest annual report from the plan and do not receive
them within 30 days, you may file suit in a federal court. In such a case, the court may require
the Plan Administrator to provide the materials and pay you up to $110 a day until you receive
the materials, unless the materials were not sent because of reasons beyond the control of the
Plan Administrator.
Retirement Plan for U.S. Employees
Summary Plan Description
28
If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit
in a state or federal court. If it should happen that plan fiduciaries misuse the plan’s money, or if
you are discriminated against for asserting your rights, you may seek assistance from the U.S.
Department of Labor, or you may file suit in a federal court. The court will decide who should
pay court costs and legal fees. If you are successful, the court may order the person you have
sued to pay these costs and fees. If you lose, the court may order you to pay these costs and
fees, for example, if it finds your claim is frivolous.
Assistance with Your Questions
If you have any questions about your Plan, you should contact the Plan Administrator. If you
have any questions about this statement or about your rights under ERISA, or if you need
assistance in obtaining documents from the Plan Administrator, you should contact the nearest
office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your
telephone directory or:
Division of Technical Assistance and Inquiries
Employee Benefits Security Administration
U.S. Department of Labor
200 Constitution Avenue N.W.
Washington, D.C. 20210
You may also obtain certain publications about your rights and responsibilities under ERISA by
calling the publications hotline of the Employee Benefits Security Administration.
Retirement Plan for U.S. Employees
Summary Plan Description
29
Appendix A: Retirement Plan Calculation Tables
2024 Covered Compensation Table
Calendar Year Of Birth
Social Security Retirement
Age
2024 Covered
Compensation Table
1930
1995
25,920
1931
1996
27,576
1932
1997
29,304
1933
1998
31,128
1934
1999
33,060
1935
2000
35,100
1936
2001
37,212
1937
2002
39,444
1938
2004
43,992
1939
2005
46,344
1940
2006
48,816
1941
2007
51,348
1942
2008
53,952
1943
2009
56,628
1944
2010
59,268
1945
2011
61,884
1946
2012
64,560
1947
2013
67,308
1948
2014
69,996
1949
2015
72,636
1950
2016
75,180
1951
2017
77,880
1952
2018
80,532
1953
2019
83,244
1954
2020
86,052
1955
2022
91,884
1956
2023
95,172
1957
2024
98,616
1958
2025
101,964
1959
2026
105,264
1960
2027
108,492
1961
2028
111,660
1962
2029
114,744
1963
2030
117,816
1964
2031
120,840
Retirement Plan for U.S. Employees
Summary Plan Description
30
Calendar Year Of Birth
Social Security Retirement
Age
2024 Covered
Compensation Table
1965
2032
123,792
1966
2033
126,660
1967
2034
129,396
1968
2035
132,036
1969
2036
134,556
1970
2037
136,944
1971
2038
139,284
1972
2039
141,588
1973
2040
143,832
1974
2041
145,956
1975
2042
147,984
1976
2043
149,892
1977
2044
151,656
1978
2045
153,420
1979
2046
155,184
1980
2047
156,864
1981
2048
158,424
1982
2049
159,900
1983
2050
161,340
1984
2051
162,768
1985
2052
163,944
1986
2053
165,096
1987
2054
166,116
1988
2055
167,004
1989
2056
167,736
1990
2057
168,360
1991 and Later
2058 and Later
168,600
Retirement Plan for U.S. Employees
Summary Plan Description
31
Appendix B: Income Option Adjustments
Option B – Life Income with 10 Years Certain
The factors in this table include both the Option B adjustment and the early retirement factor.
Age at Retirement
Adjustment Factor
55
0.5918
56
0.6401
57
0.6882
58
0.7359
59
0.7831
60
0.8298
61
0.8759
62
0.9696
63
0.9656
64
0.9609
65
0.9556
Option C – Joint Life with 75% to Survivor
The factors in this table include both the Option C adjustment and the early retirement factor.
Spouse or
Joint
Annuitant
Member's Age at Death
45
46
47
48
49
15 Yrs Older
0.2769
0.2996
0.3242
0.3512
0.3808
14 Yrs Older
0.2757
0.2981
0.3226
0.3493
0.3787
13 Yrs Older
0.2745
0.2967
0.3210
0.3475
0.3766
12 Yrs Older
0.2733
0.2953
0.3194
0.3457
0.3746
11 Yrs Older
0.2721
0.2941
0.3179
0.3440
0.3726
10 Yrs Older
0.2710
0.2928
0.3165
0.3424
0.3707
9 Yrs Older
0.2700
0.2916
0.3151
0.3408
0.3689
8 Yrs Older
0.2689
0.2904
0.3138
0.3393
0.3671
7 Yrs Older
0.2680
0.2893
0.3125
0.3378
0.3654
Yrs Older
0.2670
0.2882
0.3112
0.3363
0.3638
5 Yrs Older
0.2661
0.2871
0.3100
0.3349
0.3622
4 Yrs Older
0.2652
0.2861
0.3088
0.3336
0.3607
3 Yrs Older
0.2643
0.2851
0.3077
0.3323
0.3592
2 Yrs Older
0.2634
0.2841
0.3066
0.3310
0.3577
1 Yr Older
0.2626
0.2832
0.3055
0.3298
0.3563
Same Age
0.2618
0.2823
0.3045
0.3286
0.3550
1 Yr Younger
0.2611
0.2814
0.3035
0.3275
0.3536
2 Yrs Younger
0.2603
0.2806
0.3025
0.3264
0.3524
3 Yrs Younger
0.2596
0.2797
0.3016
0.3253
0.3511
4 Yrs Younger
0.2589
0.2790
0.3007
0.3242
0.3500
5 Yrs Younger
0.2583
0.2782
0.2998
0.3232
0.3488
Retirement Plan for U.S. Employees
Summary Plan Description
32
Spouse or
Joint
Annuitant
Member's Age at Death
45
46
47
48
49
6 Yrs Younger
0.2576
0.2775
0.2990
0.3223
0.3477
7 Yrs Younger
0.2570
0.2768
0.2981
0.3214
0.3467
8 Yrs Younger
0.2565
0.2761
0.2974
0.3205
0.3456
9 Yrs Younger
0.2559
0.2755
0.2966
0.3196
0.3446
10 Yrs Younger
0.2554
0.2748
0.2959
0.3188
0.3437
11 Yrs Younger
0.2549
0.2743
0.2953
0.3180
0.3428
12 Yrs Younger
0.2544
0.2737
0.2946
0.3173
0.3419
13 Yrs Younger
0.2539
0.2732
0.2940
0.3166
0.3411
14 Yrs Younger
0.2535
0.2727
0.2934
0.3159
0.3404
15 Yrs Younger
0.2531
0.2722
0.2929
0.3153
0.3396
Spouse or
Joint
Annuitant
Member's Age at Death
50
51
52
53
54
15 Yrs Older
0.4132
0.4487
0.4878
0.5308
0.5781
14 Yrs Older
0.4107
0.4459
0.4847
0.5272
0.5741
13 Yrs Older
0.4084
0.4432
0.4816
0.5237
0.5701
12 Yrs Older
0.4061
0.4406
0.4786
0.5203
0.5663
11 Yrs Older
0.4039
0.4380
0.4757
0.5170
0.5625
10 Yrs Older
0.4017
0.4355
0.4729
0.5137
0.5588
9 Yrs Older
0.3996
0.4332
0.4701
0.5106
0.5552
8 Yrs Older
0.3976
0.4308
0.4675
0.5075
0.5516
7 Yrs Older
0.3956
0.4286
0.4649
0.5046
0.5482
6 Yrs Older
0.3937
0.4264
0.4624
0.5017
0.5450
5 Yrs Older
0.3919
0.4243
0.4599
0.4989
0.5417
4 Yrs Older
0.3901
0.4223
0.4576
0.4962
0.5386
3 Yrs Older
0.3884
0.4203
0.4554
0.4936
0.5356
2 Yrs Older
0.3868
0.4184
0.4532
0.4911
0.5327
1 Yr Older
0.3851
0.4166
0.4511
0.4887
0.5299
Same Age
0.3836
0.4148
0.4490
0.4863
0.5272
1 Yr Younger
0.3821
0.4131
0.4470
0.4840
0.5246
2 Yrs Younger
0.3806
0.4114
0.4451
0.4818
0.5220
3 Yrs Younger
0.3792
0.4098
0.4432
0.4797
0.5196
4 Yrs Younger
0.3779
0.4082
0.4415
0.4776
0.5172
5 Yrs Younger
0.3765
0.4067
0.4397
0.4757
0.5150
6 Yrs Younger
0.3753
0.4053
0.4380
0.4737
0.5127
7 Yrs Younger
0.3741
0.4038
0.4365
0.4718
0.5106
8 Yrs Younger
0.3729
0.4025
0.4349
0.4701
0.5086
9 Yrs Younger
0.3718
0.4012
0.4334
0.4683
0.5066
10 Yrs Younger
0.3707
0.4000
0.4320
0.4667
0.5046
11 Yrs Younger
0.3696
0.3988
0.4306
0.4651
0.5028
12 Yrs Younger
0.3687
0.3976
0.4293
0.4636
0.5011
13 Yrs Younger
0.3677
0.3965
0.4280
0.4621
0.4994
14 Yrs Younger
0.3668
0.3955
0.4268
0.4608
0.4978
Retirement Plan for U.S. Employees
Summary Plan Description
33
15 Yrs Younger
0.3660
0.3945
0.4257
0.4595
0.4963
Spouse or
Joint
Annuitant
Member's Age at Retirement or Death
55
56
57
58
59
15 Yrs Older
0.6304
0.6848
0.7396
0.7946
0.8500
14 Yrs Older
0.6259
0.6797
0.7338
0.7882
0.8429
13 Yrs Older
0.6214
0.6746
0.7281
0.7819
0.8359
12 Yrs Older
0.6170
0.6696
0.7225
0.7757
0.8290
11 Yrs Older
0.6127
0.6648
0.7171
0.7695
0.8222
10 Yrs Older
0.6084
0.6599
0.7116
0.7635
0.8154
9 Yrs Older
0.6043
0.6553
0.7063
0.7575
0.8088
8 Yrs Older
0.6003
0.6507
0.7011
0.7517
0.8022
7 Yrs Older
0.5963
0.6462
0.6961
0.7460
0.7958
6 Yrs Older
0.5926
0.6418
0.6911
0.7403
0.7896
5 Yrs Older
0.5888
0.6376
0.6863
0.7349
0.7834
4 Yrs Older
0.5853
0.6335
0.6816
0.7296
0.7774
3 Yrs Older
0.5818
0.6295
0.6770
0.7244
0.7716
2 Yrs Older
0.5785
0.6256
0.6726
0.7194
0.7660
1 Yr Older
0.5752
0.6219
0.6684
0.7146
0.7605
Same Age
0.5721
0.6183
0.6642
0.7099
0.7552
1 Yr Younger
0.5690
0.6148
0.6603
0.7054
0.7501
2 Yrs Younger
0.5662
0.6115
0.6565
0.7010
0.7451
3 Yrs Younger
0.5633
0.6082
0.6528
0.6968
0.7404
4 Yrs Younger
0.5606
0.6051
0.6492
0.6927
0.7358
5 Yrs Younger
0.5579
0.6021
0.6457
0.6888
0.7314
6 Yrs Younger
0.5554
0.5992
0.6424
0.6851
0.7270
7 Yrs Younger
0.5530
0.5963
0.6392
0.6814
0.7230
8 Yrs Younger
0.5506
0.5936
0.6361
0.6779
0.7190
9 Yrs Younger
0.5483
0.5910
0.6331
0.6745
0.7152
10 Yrs Younger
0.5461
0.5885
0.6302
0.6713
0.7115
11 Yrs Younger
0.5440
0.5861
0.6275
0.6682
0.7080
12 Yrs Younger
0.5420
0.5838
0.6248
0.6652
0.7046
13 Yrs Younger
0.5401
0.5816
0.6223
0.6623
0.7014
14 Yrs Younger
0.5382
0.5794
0.6199
0.6596
0.6982
15 Yrs Younger
0.5364
0.5774
0.6175
0.6569
0.6953
Spouse or
Joint
Annuitant
Member's Age at Retirement or Death
60
61
62
63
64
65
15 Yrs Older
0.9057
0.9617
1.0715
1.0745
1.0774
1.0802
14 Yrs Older
0.8979
0.9532
1.0618
1.0645
1.0671
1.0697
13 Yrs Older
0.8902
0.9447
1.0521
1.0545
1.0569
1.0592
12 Yrs Older
0.8826
0.9364
1.0424
1.0445
1.0465
1.0485
11 Yrs Older
0.8750
0.9280
1.0328
1.0345
1.0362
1.0379
Retirement Plan for U.S. Employees
Summary Plan Description
34
Spouse or
Joint
Annuitant
Member's Age at Retirement or Death
60
61
62
63
64
65
10 Yrs Older
0.8675
0.9198
1.0233
1.0246
1.0259
1.0272
9 Yrs Older
0.8602
0.9116
1.0138
1.0147
1.0156
1.0165
8 Yrs Older
0.8529
0.9036
1.0045
1.0050
1.0055
1.0059
7 Yrs Older
0.8458
0.8957
0.9953
0.9954
0.9954
0.9954
6 Yrs Older
0.8388
0.8879
0.9862
0.9859
0.9855
0.9851
5 Yrs Older
0.8319
0.8802
0.9773
0.9766
0.9757
0.9749
4 Yrs Older
0.8252
0.8727
0.9686
0.9674
0.9661
0.9648
3 Yrs Older
0.8186
0.8654
0.9600
0.9584
0.9567
0.9549
2 Yrs Older
0.8123
0.8583
0.9517
0.9496
0.9474
0.9452
1 Yr Older
0.8061
0.8514
0.9436
0.9410
0.9384
0.9357
Same Age
0.8002
0.8447
0.9357
0.9357
0.9296
0.9264
1 Yr Younger
0.7944
0.8383
0.9281
0.9246
0.9211
0.9174
2 Yrs Younger
0.7888
0.8320
0.9207
0.9168
0.9128
0.9086
3 Yrs Younger
0.7834
0.8259
0.9135
0.9092
0.9048
0.9001
4 Yrs Younger
0.7783
0.8201
0.9067
0.9019
0.8970
0.8919
5 Yrs Younger
0.7732
0.8145
0.9000
0.8949
0.8896
0.8841
6 Yrs Younger
0.7684
0.8091
0.8937
0.8882
0.8824
0.8765
7 Yrs Younger
0.7638
0.8039
0.8876
0.8817
0.8855
0.8692
8 Yrs Younger
0.7593
0.7988
0.8817
0.8754
0.8689
0.8622
9 Yrs Younger
0.7551
0.7941
0.8760
0.8694
0.8626
0.8554
10 Yrs Younger
0.7509
0.7895
0.8706
0.8637
0.8565
0.8490
11 Yrs Younger
0.7470
0.7851
0.8654
0.8582
0.8507
0.8429
12 Yrs Younger
0.7432
0.7808
0.8604
0.8529
0.8451
0.8370
13 Yrs Younger
0.7396
0.7767
0.8557
0.8479
0.8398
0.8314
14 Yrs Younger
0.7361
0.7728
0.8511
0.8431
0.8347
0.8260
15 Yrs Younger
0.7327
0.7691
0.8467
0.8385
0.8299
0.8209
Option D – Life income with 50% to Beneficiary
The factors in this table include both the Option D adjustment and the early retirement factor.
Spouse or
Joint
Annuitant
Member's Age at Retirement
55
56
57
58
59
15 Yrs Older
0.5892
0.6380
0.6868
0.7355
0.7842
14 Yrs Older
0.5883
0.6370
0.6857
0.7342
0.7827
13 Yrs Older
0.5874
0.6360
0.6845
0.7328
0.7812
12 Yrs Older
0.5864
0.6349
0.6831
0.7314
0.7796
11 Yrs Older
0.5854
0.6337
0.6819
0.7299
0.7779
10 Yrs Older
0.5843
0.6325
0.6805
0.7283
0.7762
9 Yrs Older
0.5832
0.6312
0.6790
0.7268
0.7743
8 Yrs Older
0.5821
0.6299
0.6775
0.7250
0.7724
7 Yrs Older
0.5809
0.6285
0.6760
0.7232
0.7704
6 Yrs Older
0.5797
0.6271
0.6744
0.7214
0.7683
5 Yrs Older
0.5785
0.6257
0.6728
0.7196
0.7662
4 Yrs Older
0.5772
0.6243
0.6711
0.7178
0.7641
Retirement Plan for U.S. Employees
Summary Plan Description
35
Spouse or
Joint
Annuitant
Member's Age at Retirement
55
56
57
58
59
3 Yrs Older
0.5759
0.6228
0.6694
0.7158
0.7619
2 Yrs Older
0.5747
0.6213
0.6677
0.7139
0.7597
1 Yr Older
0.5734
0.6198
0.6660
0.7119
0.7574
Same Age
0.5721
0.6183
0.6642
0.7099
0.7552
1 Yr Younger
0.5708
0.6168
0.6626
0.7079
0.7530
2 Yrs Younger
0.5695
0.6153
0.6608
0.7059
0.7506
Yrs Younger
0.5682
0.6138
0.6591
0.7040
0.7484
4 Yrs Younger
0.5669
0.6123
0.6574
0.7020
0.7462
5 Yrs Younger
0.5656
0.6108
0.6556
0.7000
0.7439
6 Yrs Younger
0.5644
0.6094
0.6539
0.6981
0.7418
7 Yrs Younger
0.5631
0.6079
0.6523
0.6962
0.7395
8 Yrs Younger
0.5618
0.6065
0.6507
0.6943
0.7374
9 Yrs Younger
0.5606
0.6051
0.6490
0.6925
0.7353
10 Yrs Younger
0.5594
0.6037
0.6474
0.6907
0.7333
11 Yrs Younger
0.5583
0.6024
0.6459
0.6889
0.7312
12 Yrs Younger
0.5572
0.6011
0.6444
0.6872
0.7293
13 Yrs Younger
0.5561
0.5998
0.6430
0.6855
0.7274
14 Yrs Younger
0.5550
0.5985
0.6415
0.6839
0.7255
15 Yrs Younger
0.5540
0.5974
0.6401
0.6823
0.7237
Spouse or
Joint
Annuitant
Member's Age at Retirement
60
61
62
63
64
65
15 Yrs Older
0.8327
0.8813
0.9786
0.9781
0.9775
0.9769
14 Yrs Older
0.8311
0.8795
0.9766
0.9759
0.9753
0.9746
13 Yrs Older
0.8294
0.8776
0.9744
0.9736
0.9729
0.9721
12 Yrs Older
0.8276
0.8756
0.9720
0.9712
0.9703
0.9694
11 Yrs Older
0.8258
0.8735
0.9696
0.9686
0.9676
0.9666
10 Yrs Older
0.8237
0.8713
0.9670
0.9659
0.9647
0.9636
9 Yrs Older
0.8217
0.8690
0.9643
0.9630
0.9617
0.9604
8 Yrs Older
0.8196
0.8666
0.9615
0.9600
0.9586
0.9571
7 Yrs Older
0.8174
0.8641
0.9585
0.9570
0.9553
0.9537
6 Yrs Older
0.8151
0.8615
0.9555
0.9538
0.9519
0.9501
5 Yrs Older
0.8127
0.8589
0.9524
0.9504
0.9484
0.9464
4 Yrs Older
0.8102
0.8561
0.9492
0.9470
0.9448
0.9425
3 Yrs Older
0.8078
0.8533
0.9459
0.9435
0.9411
0.9386
2 Yrs Older
0.8053
0.8505
0.9425
0.9400
0.9373
0.9346
1 Yr Older
0.8027
0.8476
0.9391
0.9364
0.9335
0.9305
Same Age
0.8002
0.8447
0.9357
0.9327
0.9296
0.9264
1 Yr Younger
0.7976
0.8419
0.9322
0.9290
0.9257
0.9222
2 Yrs Younger
0.7950
0.8389
0.9288
0.9253
0.9217
0.9180
3 Yrs Younger
0.7925
0.8360
0.9253
0.9216
0.9178
0.9138
4 Yrs Younger
0.7899
0.8331
0.9219
0.9180
0.9139
0.9096
5 Yrs Younger
0.7874
0.8303
0.9185
0.9143
0.9100
0.9055
Retirement Plan for U.S. Employees
Summary Plan Description
36
Spouse or
Joint
Annuitant
Member's Age at Retirement
60
61
62
63
64
65
6 Yrs Younger
0.7848
0.8274
0.9151
0.9107
0.9061
0.9014
7 Yrs Younger
0.7823
0.8246
0.9118
0.9072
0.9023
0.8973
8 Yrs Younger
0.7800
0.8219
0.9085
0.9037
0.8986
0.8933
9 Yrs Younger
0.7776
0.8192
0.9053
0.9002
0.8949
0.8894
10 Yrs Younger
0.7752
0.8165
0.9022
0.8969
0.8913
0.8856
11 Yrs Younger
0.7729
0.8140
0.8991
0.8936
0.8878
0.8818
12 Yrs Younger
0.7707
0.8114
0.8961
0.8904
0.8844
0.8782
13 Yrs Younger
0.7686
0.8089
0.8932
0.8873
0.8811
0.8746
14 Yrs Younger
0.7664
0.8066
0.8904
0.8843
0.8779
0.8712
15 Yrs Younger
0.7644
0.8042
0.8877
0.8814
0.8748
0.8679
