At retirement, you must decide how you would like your retirement benefit paid. While there are several options from which to choose, all of them provide you with a monthly benefit for life. You may elect to have your retirement benefit paid to you as a Single Life Allowance (Option 0). This will provide you with the maximum amount payable during your lifetime, with nothing payable to your beneficiaries upon death. Or, you may elect to receive a smaller monthly benefit to provide for a possible payment to a designated beneficiary after your death. The following option choices are available:
- Single Life Allowance (Option 0)
- All Tiers: This is the basic retirement benefit. It provides for the maximum benefit payment to you each month for the rest of your life. But remember, under this selection all payments cease at your death. When you die (even if it is only one year, or sooner, after retiring), nothing will be paid to any beneficiary.
- Cash Refund — Contributions (Option 1/2)
- Tier 1 and 2 members with contributions on deposit: This option provides a reduced monthly benefit for your lifetime. At your death, any unpaid balance of your accumulated contributions will be paid to your beneficiary or your estate. If all of your accumulated contributions have been expended, all payments cease at your death.
- Cash Refund – Initial Value (Option 1)
- Tier 1 Only: This option pays a reduced monthly benefit for your lifetime. If you die before receiving retirement benefit payments equal to the initial value of your benefit, the balance will be paid to your beneficiary or estate in a lump sum.
- Joint Allowance — Full*
- All Tiers: This option provides a reduced monthly retirement benefit for your lifetime and is based on your and your beneficiary’s birth dates. If you die first, your beneficiary will receive the same monthly amount (without COLA) for life. If your beneficiary dies before you, all payments will cease at your death.
- Joint Allowance — Half*
- Tiers 1 and 2: This option provides a reduced monthly retirement benefit for your lifetime. If you die first, your beneficiary will receive monthly payments equal to one-half of the amount (without COLA) you were receiving for life. If your beneficiary dies before you, all benefit payments will cease at your death.
- Joint Allowance — Partial*
- Tiers 3 and 4: This option provides a reduced monthly retirement benefit for your lifetime based on your life expectancy and that of your beneficiary. It requires that you select either 25, 50, or 75 percent of your benefit (without COLA) to be paid to your beneficiary for their life, after your death. If your beneficiary dies before you, all benefit payments will cease at your death.
- Five Year Certain
- All Tiers: This option provides a reduced monthly retirement benefit for your lifetime. If you die within five years of retirement, payments in the same amount (without COLA) you were receiving will be made to your beneficiary for the remainder of the five-year period.
- Ten Year Certain
- All Tiers: This option provides a reduced monthly retirement benefit for your lifetime. If you die within ten years of retirement, payments in the same amount (without COLA) you were receiving will be made to your beneficiary for the remainder of the ten-year period.
- Pop-Up/Joint Allowance – Full*
- All Tiers: This option provides a reduced monthly retirement benefit for your lifetime. If you die first, your beneficiary will receive the same amount (without COLA) for life. If your beneficiary dies first, your benefit will be increased to the amount you would have received if you had selected the Single Life Allowance at retirement and all payments will cease at your death.
- Pop-Up/Joint Allowance – Half*
- All Tiers: This option provides a reduced monthly retirement benefit for your lifetime. If you die first, your beneficiary will receive one-half of your benefit (without COLA) for life. If your beneficiary dies first, your benefit will be increased to the amount you would have received if you had selected the Single Life Allowance at retirement and all payments will cease at your death.
- Alternative Options
- If the options described here do not meet your needs, we will consider written requests for other methods. These requests must be outlined in detail by you and then approved by us for legal and actuarial soundness.
*If you elect this option, you must submit proof of your beneficiary’s birth date. You can designate only one beneficiary and you cannot change your designation after your retirement. If your beneficiary is your spouse at the time of your death, he or she will be eligible for 50 percent of your COLA.
Share This
Like what you see? Share it with a friend.