FAST FACTS
- The normal form of payment for married participants is the 50% Joint and Survivor Annuity.
- The normal form of payment for single participants is the Life Annuity.
- You (and your spouse, if applicable) may reject the normal form of payment and elect an optional form of payment.
- If the value of your Accumulated Share is less than $5,000, your Accumulated Share will be paid in a single lump sum.
Joint and Survivor Annuities (Married Participants)
50% Joint and Survivor Annuity
If you are married on your effective date, and your Accumulated Share is $5,000 or more, the normal form of payment will be the 50% Joint and Survivor Annuity. This payment form provides you with an actuarially reduced monthly benefit during your lifetime and, if you die before your spouse, your surviving spouse will begin receiving a monthly benefit for his or her lifetime equal to 50% of the monthly benefit you were receiving.
75% Joint and Survivor Annuity Option
If you are married on your effective date, and your Accumulated Share is $5,000 or more, you may reject the 50% Joint and Survivor Annuity and elect the 75% Joint and Survivor Annuity Option. This payment form provides you with an actuarially reduced monthly benefit during your lifetime and, if you die before your spouse, your surviving spouse will begin receiving a monthly benefit for his or her lifetime equal to 75% of the monthly benefit you were receiving.
Purchasing a Joint and Survivor Annuity Contract
The amount of your monthly annuity benefit will be determined on the basis of the value of your Accumulated Share on your effective date. If you receive your benefit as a 50% Joint and Survivor Annuity or 75% Joint and Survivor Annuity Option, your entire Accumulated Share will be used to purchase an irrevocable annuity contract from an insurance company in the annuity form you elect.
Your purchase of a 50% Joint and Survivor Annuity or 75% Joint and Survivor Annuity Option will discharge the Trustees of all obligations to you and your spouse. Thereafter, all matters relating to your annuity contract will be the sole responsibility of the insurance company.
Your benefit will be paid in the form of a 50% Joint and Survivor Annuity unless both you and your spouse elect, in writing, to waive this benefit and designate an optional form of benefit. This optional form of benefit may not be changed without the consent of your spouse (or your spouse can expressly permit another designation without further consent). Your spouse’s consent, under any such circumstances, must acknowledge the effect of such election and be witnessed by a Notary Public.
Life Annuity
If you are not married on your effective date and the balance in your individual account is $5,000 or more, the normal form of payment is the Life Annuity. The Life Annuity payment form provides you with a monthly benefit for your lifetime that ceases upon your death. The amount of your monthly Life Annuity benefit will be determined on the basis of the value of your Accumulated Share on your effective date. If you receive your benefit as a Life Annuity, you may use your Accumulated Share to purchase an irrevocable annuity contract from an insurance company in the annuity form you elect.
If you are married on your effective date and you and your spouse properly waive the 50% Joint and Survivor Annuity, you may elect to receive your Accumulated Share in the form of a Life Annuity.
If you are not married, you may reject the Life Annuity by filing a rejection of the Life Annuity anytime within the 180-day period preceding your effective date.
Your purchase of a Life Annuity will discharge the Trustees of all obligations to you. Thereafter, all matters relating to your annuity contract will be the sole responsibility of the insurance company.
Changing Your Election Before Your Effective Date
You should file an application for benefits no more than 180 days or fewer than 30 days before the date you want payments to begin. You may reject a payment option, revoke your rejection or file a new rejection at any time during the 180-day period that ends on your effective date. However, once an annuity becomes payable, you may not change your form of payment.
Your Election Remains in EffectOnce you elect a payment in the form of an annuity and you begin receiving your monthly benefit, you may not change this form of payment. |
Optional Forms of Payment
When you become eligible to receive a distribution from the Plan, the Trustees believe you should have the flexibility when it comes to the timing and amount of your payments. Accordingly, the Plan offers participants a number of payment options. The table below lists the Plan’s normal forms of payment and each of the Plan’s optional forms.
Payment Options
| Payment Form | Married Participants | Unmarried Participants | Description |
|---|---|---|---|
| 50% Joint and Survivor Annuity* | Yes | No | The standard form of payment if you are married. Your entire Individual Account will be used to purchase a 50% joint and survivor annuity from an insurance company. You will receive a monthly benefit for your life and if you predecease your spouse, your spouse will receive a monthly benefit equal to 50% of your monthly benefit. You and your spouse must waive this payment option in order to elect any other payment option. |
| Life Annuity* | Yes | Yes | The standard form of payment if you are not married. Your entire Individual Account will be used to purchase a single life annuity from an insurance company. If you are not married, you must waive this payment form in order to elect another payment option. |
| 75% Joint and Survivor Annuity Option* | Yes | No | Your entire Individual Account will be used to purchase a 75% joint and survivor annuity from an insurance company. You will receive a monthly benefit for your life and if you predecease your spouse, your spouse will receive a monthly benefit equal to 75% of your monthly benefit. |
| Single Lump Sum Option | Yes | Yes | You will receive your entire Individual Account balance as a single lump sum. If your Account Balance is less than $5,000, you must receive your Account Balance in a Single Lump Sum. |
| Partial Lump Sum Option | Yes | Yes | You indicate what portion of your Individual Account you want to receive in a single payment, and the balance of your Individual Account remains invested in the Plan. |
| Fixed Periodic Amount Option | Yes | Yes | You indicate the fixed dollar amount you wish to be paid periodically (annually, semi-annually, quarterly, or monthly). |
| Partial Lump Sum with Fixed Periodic Amount Option | Yes | Yes | You indicate what portion of your Individual Account you want to receive in a single payment, and you also indicate the fixed dollar amount you wish to be paid periodically from the balance of your Individual Account, which you will receive periodically (monthly, quarterly, semi-annually, or annually) thereafter. The balance of you Individual Account remains invested in the Plan. |
| Fixed Time Frame Option | Yes | Yes | You indicate a specific period for payments (annually, semi-annually, quarterly, or monthly). The amount of each payment is determined by dividing your Individual Account balance by a counter (i.e., number of remaining payments) that reduces by one each time a payment is made from your Individual Account. Payments are based on the remaining number of payments you originally elected to receive. |
| Fixed Percent | Yes | Yes | You elect an annualized fixed percent of your Account Balance to be paid periodically (annually, semi-annually, quarterly, or monthly). Each periodic distribution is calculated based on your Account Balance at the time each periodic distribution is processed. |
| Life Expectancy Option | Yes | Yes | You elect a payout rate that is based on a calculated life expectancy and frequency of payments (annually, semi-annually, quarterly, or monthly). For purposes of this optional form of payment, life expectancy will be determined using the IRS Uniform Lifetime Table (ULT) method (i.e., the standard default calculation for Required Minimum Distributions). This method is based on the IRS Joint Life and Last Survivor Expectancy table (Table II in the IRS Publication 590-B), assuming a beneficiary 10 years younger than you. |
| *The purchase of this annuity shall discharge the Trustees’ obligations to you and your spouse and thereafter, the payment of benefits under the annuity, and any other matters relating to the administration of the benefit shall be the sole responsibility of the insurance company. | |||
Changing your Optional Form after Distributions Begin
If you waive the Plan’s normal benefit form (50% Joint and Survivor Annuity or Life Annuity) and elect the Plan’s:
- Partial Lump Payment Option,
- Fixed Periodic Amount Option,
- Partial Lump Sum with Fixed Periodic Amount Option,
- Fixed Time Frame Option,
- Fixed Percent Option, or
- Life Expectancy Option
You are not locked into that election throughout your retirement. You may later elect one of the Plan’s other payment options with respect to the balance of your Accumulated Share by submitting another application to the Fund Office. If you are married at the time, you must provide written consent (witnessed by a Notary Public) from your spouse.
If You Die Before Receiving Your Entire Accumulated Share
If you waive the Plan’s normal benefit form (50% Joint and Survivor Annuity or Life Annuity) and elect the Plan’s:
- Partial Lump Payment Option,
- Fixed Periodic Amount Option,
- Partial Lump Sum with Fixed Periodic Amount Option,
- Fixed Time Frame Option,
- Fixed Percent Option, or
- Life Expectancy Option
And if you die before you receive your entire Accumulated Share, your designated beneficiary (or beneficiaries) will receive the balance of your Accumulated Share as a Death Benefit. See “If You Die After Your Benefits Commence” on page 20 for more information.
Benefits of Less Than $5,000If the value of your Accumulated Share is less than $5,000, it will be paid in one lump sum payment. |