Method of Payment

The Normal Death Benefit will be paid in a lump sum. However, if the amount of the Death Benefit is $15,000 or more, the Participant or the beneficiary may elect to have the benefit paid in equal monthly installments over a period of five, ten, fifteen or 20 years. Such period may not, however, exceed the life expectancy of the named beneficiary. If an installment payment election is made, the monthly amount of each installment payment shall be determined by multiplying the lump sum amount of the death benefit otherwise payable times the appropriate factor from the following table:

For example, if a Participant’s beneficiary is entitled to a lump sum Death Benefit of $20,000 and the beneficiary elects to receive that benefit in monthly installments over ten years, the monthly amount of the installment payments would be equal to $228.80 (20 x $11.44).

If the beneficiary dies before all of the installment payments have been made, the remaining unpaid installments will be converted based on the table above and shall be paid in a lump sum to the beneficiary’s estate or heirs at law.

NOTE: If a Participant files a valid Application for Retirement during the 90-day period before his proposed retirement date and dies before his retirement date, the Participant’s election of the form of benefit shall become effective on the Participant’s retirement date. Accordingly, the Participant’s Beneficiary shall be entitled to whatever survivor benefits apply under the form of benefit elected. In the event this situation applies, neither the Normal Death Benefit nor the Screen Credit Death Benefit will be paid. Please note, however, that if a Participant has a surviving spouse or Qualified Domestic Partner at the time of the Participant’s death, the benefit election will only be effective if the surviving spouse or Qualified Domestic Partner consented (if required). The Normal Death Benefit and Surviving Spouse Benefit will generally not be payable with respect to a Participant who elects to retire but dies before retirement. See "Important" note under Amount of Normal Death Benefit.

Example 1:

Married Participant A elects on September 15, 2000 to receive the Ten-Year Certain and Life Annuity option with his son B as the beneficiary and a retirement date of December 1, 2000. Participant A’s spouse signs a consent to the election and has the consent notarized. On November 3, 2000, Participant A dies. B receives the ten year benefit starting on December 1, 2000. Participant A’s spouse receives no Surviving Spouse Benefit and no Normal Death Benefits are paid.

Example 2:

Married Participant A elects on September 15, 2000, to receive the Joint and 100% Survivor Annuity option with his wife, B, as the beneficiary and a retirement date of December 1, 2000. On November 3, 2000, Participant A dies. B receives the survivor annuity starting on December 1, 2000. No Normal Death Benefits are paid.