FAST FACTS
- The Plan provides a participant’s surviving spouse with a Preretirement Surviving Spouse Benefit if the Participant dies before the participant begins receiving his or her Accumulated Share.
- The Plan provides a Death Benefit for a Participant’s designated beneficiary in the event of the Participant’s death before or after retirement.
- If a Participant’s Accumulated Share is less than $5,000, the Participant’s Accumulated Share must be paid to his or her surviving spouse or designated beneficiary in a single lump sum.
If You Die Before Retirement
If you are married and you die before you retire, your spouse will receive a Preretirement Surviving Spouse Benefit.
Preretirement Surviving Spouse Benefit
If you are married and die before your benefit payments begin, your spouse is entitled to a Preretirement Surviving Spouse Benefit. The Preretirement Surviving Spouse Benefit is a monthly annuity for your spouse’s lifetime that is the actuarial equivalent of not less than 50% of your Accumulated Share determined on the date of your death.
The Preretirement Surviving Spouse Benefit will be provided through the purchase of an irrevocable survivor annuity from an insurance company. The purchase of this annuity will discharge the Trustees’ obligations to your spouse and thereafter the payment of benefits under the annuity, and any other matters relating to the administration of the benefit will be the sole responsibility of the insurance company.
Your surviving spouse may reject payment in the form of a survivor annuity and receive his or her Death Benefit:
- as a single lump sum,
- in monthly installments over a period not to exceed 120 months, or
- as a partial lump sum with the balance paid in monthly installments over a period not to exceed 120 months.
If the value of the Preretirement Surviving Spouse Benefit is less than $5,000, your surviving spouse will be paid in a single lump sum.
The Preretirement Surviving Spouse Benefit is payable to a participant’s surviving spouse at any time after the participant’s death. Generally, before the Plan can pay the benefit, your surviving spouse must submit an application that includes all information required to process the claim. However, benefit payments to a surviving spouse must begin no later than December 31st of the calendar year following the calendar year in which the participant died, or by December 31st of the calendar year in which the participant would have attained his or her Applicable Age (see page 47), if later.
Your spouse should contact the Fund Office at 301-731-1050 as soon as possible to avoid any delay in beginning the surviving spouse benefit.
Waiving the Preretirement Surviving Spouse Benefit
If you are married and you wish to designate someone other than your spouse to receive the portion of your Accumulated Share that would otherwise be paid upon your death to your surviving spouse as a Preretirement Surviving Spouse Benefit (that is, you would like to designate someone other than your spouse to receive more than 50% of your Accumulated Share upon your death), you and your spouse must complete both a Waiver of Preretirement Surviving Spouse Benefit and a Designation of Beneficiary Form, and both of your signatures must be witnessed by a Notary Public.
The Waiver of Preretirement Surviving Spouse Benefit and the Designation of Beneficiary Form include an explanation of your spouse’s right to at least 50% of your benefit, payable in the form of a lifetime annuity. It also explains that the effect of the consent is to give up this survivor protection. In the form, you must disclose which of the optional forms of benefit payment you have elected and/or the name of your designated beneficiary. Your spouse may waive the right to consent to any change of beneficiary. To be valid, the form must be submitted to the Fund Office prior to the date of your death.
Death Benefit (Non-Spouse Beneficiary)
If you die before you begin to receive your benefits from this Plan and you are not married, your entire Individual Account will be paid to your beneficiary (or beneficiaries). Your beneficiary may elect to choose to receive his or her Death Benefit:
- as a single lump sum,
- in monthly installments over a period not to exceed 120 months, or
- as a partial lump sum with the balance paid in monthly installments over a period not to exceed 120 months.
However, if at the time benefits commence to your beneficiary the value of your Accumulated Share is less than $5,000, your beneficiary will be paid in a single lump sum.
Benefits to your beneficiary (or beneficiaries) must commence on or before December 31st of the calendar year following the calendar year of your death, and your entire Accumulated Share must be distributed no later than December 31st of the calendar year containing the 10th anniversary of your death.
Death Benefit (Spouse as Designated Beneficiary)
If your spouse is your designated beneficiary for your entire Individual Account, he or she may elect to use the entire Accumulated Share to purchase an annuity contract from an insurance company or your spouse may waive his or her right to the Preretirement Surviving Spouse Annuity and elect to receive your Accumulated Share:
- as a single lump sum;
- in monthly installments over a period not to exceed 120 months, or
- as a partial lump sum with the balance paid in monthly installments over a period not to exceed 120 months.
However, if the value of the Preretirement Surviving Spouse Benefit is less than $5,000, your surviving spouse will be paid in a single lump sum.
Death Benefit payments to a surviving spouse must begin no later than December 31st of the calendar year following the calendar year in which the participant died, or by December 31st of the calendar year in which the participant would have attained his or her Applicable Age, if later.
If You Die after Retirement
If you die after you have begun receiving benefit payments, and provided your benefit is not being paid as a 50% Joint and Survivor Annuity, 75% Joint and Survivor Annuity Option, or Life Annuity, your spouse or other designated beneficiary will receive a Death Benefit equal to the balance of your Accumulated Share.
If you elected the 50% Joint and Survivor Annuity (or a 75% Joint and Survivor Annuity Option) and you predecease your spouse, your spouse will receive a 50% survivor annuity (or 75% survivor annuity). No additional Death Benefit is payable.
If You Do Not Name a Beneficiary
If you fail to name a beneficiary or your designated beneficiary is not living on the date of your death, any death benefit will be payable in the following order:
First—to your spouse, if you’re married as of the date of your death;
Second—to your designated beneficiary under the Electrical Workers Local No. 26 Pension Trust Fund, if any,
Third—to your designated beneficiary under the Electrical Welfare Trust Fund, if any;
Fourth—in equal shares to your surviving children, if any;
Fifth—in equal shares to your surviving natural parents, if any; or
Sixth—to your estate.