ADP 2008 Annual Report Download - page 89

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(ii) A Grandfathered Participant’ s Early Retirement Benefit shall be in an amount equal to the Participant’ s Annual Plan Benefit,
reduced at a rate of 5/12 of 1% per month for each full month by which the date the Participant’ s benefit commences precedes the Participant’ s
N
ormal Retirement Date.
(iii) If a Non-Grandfathered Participant’ s Early Retirement Benefit commences after the Participant’ s 62nd Birthday but prior to his
N
ormal Retirement Date, his benefit shall be in an amount equal to the Participant’ s Annual Plan Benefit, reduced at a rate of 4/12 of 1% per
month for each full month by which the date the Participant’ s benefit commences precedes the his Normal Retirement Date. If the Non-
Grandfathered Participant’ s Early Retirement Benefit commences before the Participant’ s 62nd Birthday, his benefit shall be reduced (x) at a
rate of 5/12 of 1% per month for each full month by which the date the Participant’ s benefit commences precedes the Participant’ s 62nd
Birthday, and (y) at a rate of 4/12 of 1% per month for each full month by which the date the Participant’ s 62nd Birthday precedes the
Participant’ s Normal Retirement Date.
(c) Late Retirement Benefit. The Company will pay a Former Participant his Late Retirement Benefit if benefits commence under the
Plan on or after the Former Participant’ s Normal Retirement Date. Payment of a Late Retirement Benefit shall commence in accordance with
Section 3.2 and end with: (A) in the case of a single life annuity, the payment for the month in which the Participant’ s death occurs, (B) in the
case of a joint and survivor annuity, the later of (1) the payment for the month in which the death of the Participant occurs or (2) the payment
for the month in which the death of the Participant’ s beneficiary occurs or (C) in the case of a 10 year certain and life annuity, the later of (1)
the payment for the month in which the death of the Participant occurs or (2) the one hundred and twentieth monthly payment. When paid in
the form of a monthly annuity, each payment shall be equal to one-twelfth of such Participant’ s Late Retirement Benefit, actuarially adjusted
for the form of payment selected by the Participant, as applicable. This subsection 3.3(c) shall only apply to Former Participants.
(d) No Interest for Delayed Payments. Payments to Participants which are made or commence in accordance with Section 3.2(a)(ii)
shall include a single lump sum payment in respect of the period beginning on the Participant’ s Separation from Service and ending on the first
day of the seventh month following the month in which the Participant’ s Separation From Service occurs. Such single lump sum payment shall
be made without interest.
7