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Pension Update

This document outlines pension eligibility criteria based on years of service, detailing benefits available to employees retiring at various ages. The guidelines specify the number of years required for full benefits, early retirement options, and any special provisions for disabled individuals. It also provides formulas for calculating pension amounts based on career earnings, service multipliers, and average monthly earnings. Understanding these factors is essential for employees planning for retirement to ensure they maximize their benefits and navigate the complexities of pension eligibility effectively.

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Pension Update

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  1. Pension Update July 2004

  2. Eligibility Years of Service <5 yrs 5–10 yrs 10 yrs At Exit Age Less than 55 N/A Vestor A Vestor B 55 – 65 N/A Vestor A Retiree – Early 65 N/A Vestor A Retiree – Normal Over 65 N/A Vestor A Retiree – Deferred N/A No pension, no retirement benefits. Vestor A Pension (vested factors), no retirement benefits. Vestor B Pension (vested factors), no retirement benefits.Note: Special rules may apply if disabled, die or is covered by 50-54 Severance Rule. Retiree Pension (normal factors), full retirement benefits.

  3. = Career Earnings Career Earnings  2.125% Adj. Highest AverageMonthly Base Earnings (HAE = Highest Avg. Earnings) HAE  Service Multiplier #1*  Service+ (HAE – 150% Covered Compensation) (Service Multiplier #2*  Service) = Ohio Edison Highest Average Monthly Earnings Formula or Centerior Energy Final Average Earnings Benefit Formula * Service Multiplier #1 First 20 years 1.58% Next 10 years 1.18% Next 5 years 0.78% Over 35 years 1.1% Service Multiplier #2 First 35 years 0.32% Pension Formulas

  4. Age Normal Vested 65 100% 100% 64 100% 91% 63 100% 82% 62 100% 75% 61 100% 69% 60 100% 63% 59 88% 58% 58 84% 53% 57 80% 49% 56 75% 45% 55 70% 42% Early Retirement Factors

  5. 55–65 years of age Vestor Post-2000 Pre-2001 Vestor Post-2000 Pre-2001 Years 55 56 57 58 59 60 61 62 63 64 65 59½–60½ years of age Years 59 59 59 59 59 59 60 60 60 60 60 60 60 Months 6 7 8 9 10 11 0 1 2 3 4 5 6 Early RateFactors

  6. PensionEstimate 6

  7. Pension Estimate

  8. Disability Retirement Benefits 10 years of service and eligible to receive benefits from FirstEnergy’s LTD Program • Disability Retirement Benefits of $400 per month, payable to earliest of: recovery, death, or age 65 • Continue to accrue pension service • Eligible for retiree healthcare

  9. Less than 5 N/A N/A 100% prov payee, VestorERFS, no ret. benefits 5 to 10 0 100% prov payee, NormalERFS, ret. benefits 10 or more No change 100% prov payee, NormalERFS, ret. benefits Before DOC No change On or AfterDOC Option elected, NormalERFS, ret. benefits N/A N/A Less than5 N/A 100% prov payee, VestorERFS, no ret. benefits 5 or more 0 Death Benefits Benefit Commencement Years ofService Status Age 55 (earliest) Immediate* Active Retired Terminated * 1st of month following.

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