NORMAL FORMS OF BENEFIT PAYMENT
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
of 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 Modified Cash Refund Annuity
- Married – Refer to the Standard Joint & Survivor Annuity (50% J&S)
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.
Modified Cash Refund Annuity
If you are single, the normal form of benefit is a Modified Cash Refund
Annuity. You will receive a monthly benefit for as long as you live. Benefits
will cease upon your death. However, if you made contributions to the Prior Plan
before 1976 and the total amount of annuity payments you received, at the time
of your death, is less than your employee contributions and interest, the
balance will be paid to your beneficiary in one lump sum.
Standard Joint and Survivor Annuity (50% J&S)
If you are married when benefits begin, your normal form of payment is a
Standard 50% Joint and Survivor Annuity for you and your spouse. Under this form
of payment, you receive monthly payments for the rest of your life. 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 Modified Cash Refund
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.
OPTIONAL FORMS OF BENEFIT PAYMENTS
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
Standard Joint and Survivor Annuity with your spouse as contingent beneficiary,
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 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.
- 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.
Modified Cash Refund Annuity
With your spouse’s consent, you may choose a Modified Cash Refund Annuity as
an optional form of payment even though you are married. This optional form of
benefit is a monthly benefit for as long as you live. Benefits will cease upon
your death. However, if you made contributions to the Prior Plan before 1976,
and the total amount of annuity payments you received, at the time of your
death, was less than your employee contributions and interest, the balance will
be paid to your beneficiary in one lump sum.
5-Year or 10-Year Certain & Life Annuity
You will receive an actuarially reduced monthly benefit for your lifetime
with a guarantee that at least five years (60 months) or 10 years (120 months),
depending upon your option election, of benefit payments will be made. If you
die before the end of the five-year or ten-year period following your retirement
date, your named beneficiary will receive the remaining monthly payments for the
balance of the five-year or ten-year period, whichever is applicable based on
your option election.
You may designate primary and contingent beneficiaries. If you, your primary
and your contingent beneficiaries all die before the 60 or 120 months of
payments have been made (which ever is applicable), the remaining monthly
benefits will be paid in a single sum to the estate of the last survivor.
If you are, or will be, age 91 or older in the year when benefit payments
would begin, you are not eligible for this payment options.
Joint and Survivor Annuity (25%, 50%, 75% or 100% J&S))
You will receive an actuarially reduced monthly benefit for your lifetime.
You may choose to continue payments to your surviving spouse equal to 25%, 50%,
75% or 100% of the amount you had been receiving. After your death, your
surviving spouse receives the elected percentage of your benefit for their
lifetime.
To reflect the fact that benefits are paid over two lifetimes, the joint and
survivor annuity amount payment 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.
Lump Sum Payment
If you are eligible for early (age 55 through age 64) or normal (age 65 or
older) retirement benefits, you may elect to receive an immediate lump sum
(single sum) payment rather than a monthly annuity. The lump sum must be elected
to be paid immediately upon retirement—payment may not be deferred. Your lump
sum payment will include the value of any Pre-Social Security Annuity to which
you may be entitled.
If your employment ends because of disability or involuntary termination due to
work force reduction or job elimination, you may elect a lump sum payment if
you:
- Have 10 years of Vesting Service, at any time after age 55
- If you have five years of Vesting Service, at age 65.
PRE-SOCIAL SECURITY ANNUITY(PSSA)
If you are beginning your Plan benefit before you are eligible for Social
Security benefits (either because you reach age 62 or you become disabled), you
may be eligible for a Pre-Social Security Annuity. This annuity is in addition
to your early retirement or terminated vested benefit.
To be eligible for this benefit, you:
- Must have been hired prior to July 1, 1986, and be eligible for either:
- An early retirement benefit (age 55 and 10 years of Vesting Service)
or
- A terminated vested benefit with 10 or more years of Vesting
Service; or
- Have incurred a disability prior to April 30, 1997 and are eligible for
early or terminated vested retirement benefits.
The PSSA benefit ceases when you reach age 62. The amount of the PSSA
benefit is determined on your early retirement date and ranges from $120 per
month for retirement at age 55 up to $150 per month for retirement at age 61.