NORMAL FORMS OF BENEFIT PAYMENT
The Plan adapts to your retirement needs by offering a number of different
ways in which you may receive your benefit. You can choose payments which last
for your lifetime alone, providing you with the largest monthly payment, or you
can extend payments to cover the life of another person besides yourself, should
you die before that person. Your monthly payment is smaller in this case because
monthly payments are expected to continue for a longer period.
Regardless of whether you are single or married, if the total value of your
retirement benefit is $1,000 or less, you will receive a single lump-sum payment
for your retirement benefit.
If the total value of your retirement benefit is more than $1,000, you will
be able to choose from several payment options. Your benefit is automatically
paid in the normal form unless you choose otherwise.
There are two normal forms of benefit payment methods. If you are:
- Single – Refer to the Single Life Annuity
- Married – Refer to the 50% Joint & Surviving Spouse Annuity
You do, however, have the right to elect an optional form of benefit payment.
You may change your election at any time before your retirement date. Upon
your retirement date your election becomes irrevocable.
Single Life Annuity
If you are single when you begin receiving your benefits, your normal form of
payment is a single life annuity. Under this form of payment, you receive a
monthly benefit for the rest of your life; no benefit will be payable after you
die.
50% Joint and Surviving Spouse Annuity
If you are married when benefits begin, your normal form of payment is a 50%
joint and surviving spouse annuity. Under this form of payment, you receive
monthly payments for the rest of your life and, after your death, 50% of your
benefit will be paid to your spouse for his or her lifetime. To reflect the fact
that benefits are paid over two lifetimes, the joint and survivor annuity amount
payable to you is less than the single life annuity amount. Your spouse is your
husband or wife to whom you were legally married on the date Plan benefits
began. Even if you are not married to your “spouse” at the time of your death,
the benefit will be payable to your “spouse” unless your “spouse” pre-deceases
you.
Initially, your benefit amount is calculated according to the benefit formula
which is in the form of a single life annuity. The amount is then converted to a
50% joint and survivor annuity using an actuarial factor which is based on the
joint life expectancy of you and your spouse.
Optional Forms of Benefit Payment
You can elect an optional form of payment instead of the normal form. The
value of any optional form of benefit is the actuarial equivalent of the normal
form of benefit .
If you are married and want to elect a form of payment other than the 50%
Joint and Surviving Spouse Annuity, you must have your spouse’s written,
notarized consent to such election.
You may revoke this election any time prior to when your benefit begins. If
your election is made less than 30 days before your retirement date, your first
month’s payment will be in the normal form. Then, the following month, your
elected form of payment will begin.
Any optional form of benefit elected by a married participant will not be
effective unless the spouse’s consent is given in writing before a notary
public.
Cashout
If the actuarial present value of your vested accrued benefit is $5,000 or
less when you terminate employment, you will be eligible to receive a cashout (a
single sum payment) as soon as administratively possible.
- If the actuarial present value of your vested accrued benefit is $1,000
or less, you will automatically be given a cashout.
- If the actuarial present value of your vested accrued benefit is more
than $1,000 but is $5,000 or less, you may elect to receive a cashout.
If you receive a cashout, no further benefits will be payable under the Plan.
You may elect to roll over the portion of your cashout that qualifies as an
eligible rollover distribution directly to an IRA or another qualified plan that
accepts rollover contributions.
Single Life Annuity
You receive a monthly benefit for as long as you live and upon your death
payments stop.
Joint and Survivor Annuity
You receive an actuarially reduced monthly benefit for your lifetime. You may
choose to continue payments to your survivor equal to 50%, 75% or 100% of the
amount you had been receiving. After your death, your surviving beneficiary
receives the elected percentage of your benefit until their death. Your
surviving beneficiary may be anyone you name – be it a spouse, a relative, or a
friend. To reflect the fact that benefits are paid over two lifetimes, the joint
and survivor annuity amount payable to you is less than the single life annuity
amount.
Five, Ten, or Fifteen Year Continuous and Certain
You receive an actuarially
reduced monthly benefit for your lifetime with a guarantee that at least 5, 10,
or 15 years of benefit payments will be made. If you die before the expiration
of the guarantee period you elected, your beneficiary will receive the remaining
monthly payments. You may designate primary and contingent beneficiaries. If
you, your primary and your contingent beneficiaries die before the end of the
guarantee period, the commuted value of the remaining monthly benefits will be
paid in a single sum to your surviving spouse, if living; otherwise in equal
shares to your surviving children, and in the event none of your children
survives you, to the executor of your estate. Also, if your life expectancy
according to actuarial life expectancy tables is less than 10 years you are not
eligible for this payment option.
Single Sum Payment
If the actuarial present value of your vested accrued benefit is more than
$1,000 but less than $15,000 when you elect to receive your pension benefit, you
may elect to receive a single sum (lump-sum) payment rather that a monthly
annuity. A single sum payment in an amount greater than $5,000 is not available
before the later of your attainment of age 55 or your retirement. If you choose
to receive a single sum payment, no further benefits will be payable under the
Plan. You may elect to roll over the portion of your single sum payment that
qualifies as an eligible rollover distribution directly to an IRA or another
qualified plan that accepts rollover contributions.