P E N S I O N
Benefit Payment Methods
The plan provides a normal form of payment for married and single participants.
If You Are Single at Retirement
If you are single at your retirement date, the normal form of your retirement benefit is a monthly benefit for your lifetime, starting with your retirement date. Benefit payments do not continue after your death. This form of payment is called a single life annuity.
If You Are Married at Retirement
If you are married at your retirement date, the normal form of payment will provide a lifetime monthly benefit to you and, after your death, continue to pay 50% of your benefit to your spouse for his or her lifetime. This form of payment is called a joint and 50% survivor annuity.
If you are married, you may choose a beneficiary other than your spouse, and you may also choose to have your benefit paid as a single life annuity instead of a joint and 50% survivor annuity. You must, however, have your spouse’s written consent to your choice, and your spouse’s signature must be witnessed by a plan representative or a notary public. Your spouse’s signature is required by federal law.
If your spouse or other beneficiary is 15 or more years younger than you, the benefit you receive will be reduced to account for the longer life expectancy of your spouse or
beneficiary.
Lump Sum Option
You may choose to have 5%, 10%, 15%, 20%, or 25% of your retirement benefit paid to you as a lump sum. The balance of your benefit will be paid out as monthly payments,
but reduced by the same percentage as the lump sum amount you choose. For instance, if you choose to receive 10% of your benefit in the form of a lump sum, your monthly benefit payments will be reduced by 10%.
If you choose the lump sum option, you must have your spouse’s written consent to your choice. Your spouse’s signature is required by federal law and must be witnessed by a plan representative or a notary public.
Disability Retirement Benefit Payment Options
If you are married and become disabled before age 57, your benefit is not reduced for the 50% joint and survivor annuity until you reach age 57. At age 57, whether or not your benefit is reduced for the 50% joint and survivor annuity depends on your spouse’s age.
v If your spouse is less than 15 years younger than you at age 57, the benefit is payable as a joint and 50% survivor form of payment without a reduction in the form of payment until you reach age 57.
v If your spouse is 15 or more years younger than you at age 57, the benefits will be reduced to account for the joint and 50% survivor annuity form of payment.
If your spouse dies before you do, if applicable, the benefit will be recalculated to provide a single life annuity for your lifetime. You may choose to have 5%, 10%, 15%, 20%, or 25% of your retirement benefit paid as a lump sum. The balance of your benefit will be paid out as monthly payments, but reduced by the same percentage as the lump sum amount chosen. For instance, if you choose to receive 10% of your benefit in the form of a lump sum, the remaining monthly benefit payments will be reduced by 10%. If you choose the lump sum option, you must have your spouse’s written consent to your choice. Your spouse’s signature is required by federal law and must be witnessed by a plan representative or a notary public.
If You Leave A Participating Employer Before You Retire And Later Return
If you leave a contributing employer after five credited years of service and return before benefit payments begin, you will begin participating in the plan immediately as of your date of rehire. Any service you had before you left will be added to any service after you return to determine your credited service. This total retirement benefit will be reduced by the amount of the benefits you have already received during your first
retirement.
If You Die Before Benefits Begin
If you have five credited years of service and die before receiving plan benefits, your spouse — or your beneficiary if you are single — will be entitled to a survivor benefit from the plan. This survivor benefit will be payable whether or not you are actively working at the time of your death.
Survivor benefits are payable as of the first day of the month following your death, provided your spouse or beneficiary has completed an application for benefits and the Joint Pension Committee approves the application.
For Your Spouse
Your spouse’s benefit will be based on the benefit you would have received under the joint and 50% survivor annuity figured on the day of your death.
For Your Beneficiary
If you are single when you die, your beneficiary will receive your survivor benefit. The survivor benefit will be figured like the survivor spouse benefit, but the monthly benefit will be payable to your beneficiary for 10 years. After that ten-year period, no other benefit will be paid to your beneficiary.
Lump Sum Option
Your spouse may choose to have 5%, 10%, 15%, 20%, or 25% of your retirement benefit paid as a lump sum. The balance of your benefit will be paid out as monthly payments, but reduced by the same percentage as the lump sum amount chosen. For instance, if your spouse chooses to receive 10% of your benefit in the form of a lump sum, the remaining monthly benefit payments will be reduced by 10%.
|
Contact
Info