Form of Payment
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What other forms of payment are available?
You also have the option to elect (with your
spouse’s consent, if you are married) one of the following forms of payment. All
optional forms of payment
are the actuarial equivalent of the amount you would be paid under the Single
Life Annuity.
Life
Annuity with 120 months guaranteed – Under this form
of benefit payment, you will receive reduced monthly payments for as long as
you live, but if you die before you receive payments for 120 months, monthly
payments will continue to be paid to your designated beneficiary for the
remainder of the 120-month period.
Joint
and 100% Survivor Annuity with pop-up
– Under this option, you will receive a reduced monthly benefit for as long as
you live and upon your death your spouse will continue to receive 100% of your
benefit for his/her life. Under this
form of payment, if your spouse should die before you, your benefit will be
increased to the amount you would have received if your benefit had been paid as
a Single Life Annuity. The “pop-up” benefit will become payable as of the first
day of the month following the month in which your spouse dies, provided you
file a written application for the “pop-up” benefit, and you provide proof of
your spouse’s death. No spousal consent is required to elect this option.
Level
Income Option - If
you elect an Early Retirement Pension or a Rule of 90 Retirement Pension, the
Plan also provides for a form of payment called the Level Income Option.
This form of payment adjusts the amount you
receive to take into account your anticipated Social Security payments.
If you elect the Level Income Option, you
will receive a higher monthly pension from the Plan during the years you are
not yet old enough to draw Social Security benefits.
Then, when your Social Security benefits
commence (reduced at age 62 or unreduced at age 65,66 or 67, depending on your
year of birth ), your monthly Plan pension payments will be reduced.
This form is designed to produce an
approximately “level” retirement
income throughout all of your retirement years - when your Plan pension and
your Social Security pension are added together. However, because this calculation is made
when you first retire, it is based on your estimated Social Security pension.
If the amount you actually receive from
Social Security is different or you actually elect to begin to draw your Social
Security at a date different than originally anticipated, your Level Income
Option payments will not be changed.
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