This excerpt taken from the LPX 10-Q filed Aug 8, 2005.
In general, the following calculation methodology should be applied:
a) Calculate the target benefit at age 62
b) Subtract the offset balances as of the Termination Date converted to an annuity payable at age 62 (0% investment return assumed to age 62)
c) Subtract 50% of the Social Security Benefit payable at age 62
d) Convert to an annuity payable as of the Commencement Date, using the Early Retirement Reduction Factors if applicable
e) Benefits that commence later than the first of the month following the Participants 62nd birthday will be actuarially increased to adjust for the late commencement
f) Convert the annuity as of the Commencement Date to a lump-sum or optional annuity benefit form if elected by participant
Specific calculation methodologies for each type of benefit are defined below.