Retirement Benefit Payment Options Offered |
Things to Remember:
Five-Year Certain and Life Annuity Option
- This option is automatic for an Unmarried Participant.
- This option provides an unreduced monthly benefit for the life of the Participant.
- If the Participant dies before receiving 60 monthly payments, then payments
will be paid to the beneficiary until a total of 60 payments have been made.
- The Beneficiary may be changed at any time with written request (including
spousal consent) only.
Ten-Year Certain and Life Annuity Option
- This option provides a reduced monthly benefit for the life of the Participant.
- If the Participant dies before receiving 120 monthly payments, then payments
will be paid to the beneficiary until a total of 120 payments have been made.
- The Beneficiary may be changed at any time with written request (including
spousal consent) only.
Joint & 50% Survivor Annuity
- This option is automatic for a Married Participant unless the spouse signs
a Rejection of the Qualified Joint & Survivor Annuity. The same applies to
a Participant with a Qualified Domestic Partner under the Pension Plan.
- The Participant will receive a reduced monthly benefit for his/her lifetime.
- The Joint Annuitant will receive 50% of the pension payable for his/her
lifetime, upon Participant’s death.
- A non-spouse Joint Annuitant cannot be more than 44 years younger than the
Participant.
- No change in Joint Annuitant may be made after retirement.
Joint & 66-2/3% Survivor Annuity
- The Participant will receive a reduced monthly benefit for his/her lifetime.
- The Joint Annuitant will receive 66-2/3% of the pension payable for his/her
lifetime, upon Participant’s death.
- Non-spouse Joint Annuitant cannot be more than 24 years younger than the
Participant.
- No change in Joint Annuitant may be made after retirement.
Joint & 100% Survivor Annuity
- The Participant will receive a reduced monthly benefit for his/her lifetime.
- The Joint Annuitant will receive 100% of the pension payable for his/her
lifetime, upon Participant’s death.
- Non-spouse Joint Annuitant cannot be more than 10 years younger than the
Participant.
- No change in Joint Annuitant may be made after retirement.
Joint & Survivor Annuity with Pop-up (50%, 66-2/3%, or
100%)
- This option is similar to the J&S Annuity Option, unless the Joint Annuitant
predeceases the Participant.
- If Joint Annuitant predeceases Participant, monthly amount payable to Participant
is "popped-up" to amount payable under Five-Year Certain Option for Participant’s
lifetime, but there is no Five-Year guarantee.
- Benefit ceases upon Participant’s death, if monthly benefit is "popped-up"
due to Joint Annuitant’s death.
Joint & 50% Survivor Annuity with Pop-up Example
- Mr. Woods’ (Participant) elected the 50% Joint & Survivor with Pop-up Annuity
option. The Five-Year Certain and Life Annuity payment would have been $2,000.
See below for the example:
- Mr. Woods (Participant) receives a monthly benefit of $1,780 under this
option.
- Mrs. Woods (Joint Annuitant) predeceases Mr. Woods on 1/22/00.
- Mr. Woods’ monthly benefit will be "popped-up" to $2,000 beginning 2/1/00.
Joint & Survivor 66-2/3% Annuity with Pop-up Example
- Mr. Palmer (Participant) elected the 66-2/3% Joint & Survivor Annuity with
Pop-up option. The Five-Year Certain and Life Annuity benefit would have been
$2,000. See below for the example:
- Mr. Palmer (Participant) receives a benefit of $1,720 under this option.
- Mr. Palmer (Participant) dies on 5/13/02.
- A monthly benefit of $1,146.67 (or 66-2/3% of what Mr. Palmer was receiving
at the time of his death) will be paid to Mrs. Palmer (Joint Annuitant)
beginning 6/1/02 for her lifetime.
Joint & 100% Survivor Annuity with Pop-up Example
- Mr. Norman (Participant) elected the 100% Joint & Survivor Annuity with
Pop-up Annuity option. The Five-Year Certain and Life Annuity benefit would
have been $2,000. See below for the example:
- Mr. Norman (Participant) receives a benefit of $1,590 under this option.
- Mr. Norman (Participant) dies on 11/1/01.
- Mrs. Norman (Joint Annuitant) will receive $1,590 (or 100% of what Mr.
Norman was receiving at the time of his death) beginning 12/1/01 for her
lifetime.
- However, if Mrs. Norman (Joint Annuitant) had predeceased Mr. Norman
(Participant), then Mr. Norman’s monthly benefit would have been "popped-up"
to $2,000 beginning the first of the month after Mrs. Norman’s death.
Social Security Adjustment Benefit
- This option provides a uniform total retirement income.
- Participant must retire Early and begin payments with Plan before SS benefits
begins.
- This option provides larger monthly payments until SS benefits begin, then
the monthly payments will be reduced or terminated to reflect payment of Social
Security Benefits.
- There will be no continuation of benefits to anyone after the Participant’s
death.
- The amount is based on certain actuarial adjustments specified in the Plan.
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