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When you become eligible for and elect payment of your Annuity Plan benefit, you will need to decide how you want to have your benefit paid. The Annuity Plan offers these forms of payment:

  • Joint and 50% contingent survivor annuity (available to married participants only);
  • Joint and 75% contingent survivor annuity (available to married participants only);
  • Single sum cash payment or a non-periodic partial cash payment;
  • Fixed or variable annuity; and
  • Installment payments.

If your Annuity Plan benefit is $1,000 or less, your benefit will automatically be paid to you as a lump-sum payment.

The joint and 50% or 75% contingent survivor annuity and fixed or variable annuities are payable through the purchase of an annuity from an outside company. The outside company assumes responsibility for payment of the benefit and the Plan will have no further liability for payment of benefits.

Joint and 50% Contingent Survivor Annuity

The joint and 50% contingent survivor annuity provides a monthly benefit to you for your lifetime. After your death, your surviving spouse will receive a monthly benefit equal to 50% of the amount you were receiving for the remainder of his or her lifetime.

The normal form of payment for married participants is the joint and 50% contingent survivor annuity. If you are married, your benefit will be paid as a joint and 50% contingent survivor annuity unless you and your spouse waive this form of payment.

The joint and 50% contingent survivor annuity provides a reduced monthly benefit while you are living. After your death, your surviving spouse will receive a monthly benefit equal to 50% of the amount you were receiving while you were alive. Your spouse will receive payment of this benefit until he or she dies.

If you choose an annuity, the Plan will use the balance in your account to purchase an annuity from an outside company that sells annuities, based on the type of annuity you select. Once an annuity is purchased, the Fund has no further responsibility for your benefit. You or your spouse will need to coordinate with the annuity company on any issues concerning your annuity or survivor benefits.

You will receive a description of the terms and conditions of the joint and 50% contingent survivor annuity at least 30 days (but no more than 90 days) before your benefits begin. The description includes your and your spouse’s right to waive this form of payment and a description of optional forms of payment. To waive the joint and 50% contingent survivor annuity form of payment, you and your spouse must provide a written waiver within the 90-day period before payment of your Annuity Plan benefit begins. You and your spouse must sign the written statement in the presence of a notary public or a designated Annuity Plan representative. A waiver is only effective if you receive a written explanation of the joint and 50% contingent survivor annuity at least 30 days (but no more than 90 days) before you begin to receive payment of your Annuity Plan benefit.

Joint and 75% Contingent Survivor Annuity

The joint and 75% contingent survivor annuity provides a monthly benefit to you for your lifetime. After your death, your surviving spouse will receive a monthly benefit equal to 75% of the amount you were receiving for the remainder of his or her lifetime.

An optional form of payment for married participants is the joint and 75% contingent survivor annuity. If you are married, you may choose that your benefit will be paid as a joint and 75% contingent survivor annuity. If you choose this form of payment in writing, you and your spouse must waive the joint and 50% contingent survivor annuity.

The joint and 75% contingent survivor annuity provides a reduced monthly benefit while you are living. After your death, your surviving spouse will receive a monthly benefit equal to 75% of the amount you were receiving while you were alive. Your spouse will receive payment of this benefit until he or she dies.

If you choose an annuity, the Plan will use the balance in your account to purchase an annuity from an outside company that sells annuities, based on the type of annuity you select. Once an annuity is purchased, the Fund has no further responsibility for your benefit. You or your spouse will need to coordinate with the annuity company on any issues concerning your annuity or survivor benefits.

You will receive a description of the terms and conditions of the joint and 75% contingent survivor annuity at least 30 days (but no more than 90 days) before your benefits begin. The description includes your and your spouse’s right to waive the joint and 50% contingent survivor annuity form of payment and a description of optional forms of payment. To waive the joint and 50% contingent survivor annuity form of payment, you and your spouse must provide a written waiver within the 90-day period before payment of your Annuity Plan benefit begins. You and your spouse must sign the written statement in the presence of a notary public or a designated Annuity Plan representative. A waiver is only effective if you receive a written explanation of the joint and 75% contingent survivor annuity at least 30 days (but no more than 90 days) before you begin to receive payment of your Annuity Plan benefit.

Lump-Sum Payments

If your Annuity Plan benefit is $1,000 or less, it may be paid to you as a lump-sum payment.

If your Annuity Plan benefit is $1,000 or less, it may be paid to you as a lump-sum payment (Concerning Taxes).

If you are not married, your benefit may be paid as one lump-sum payment unless you elect otherwise.

If the value of your benefit is greater than $1,000 and you are married, you may elect to receive your benefit as a single or partial lump-sum payment or other optional form of payment if you and your spouse elect, in writing, to waive the joint and 50% contingent survivor annuity.

You may not take a partial cash payment if you have an outstanding loan.

Fixed or Variable Annuity

If you are not married, you may waive the lump-sum payment option and have your benefit paid as a fixed or variable annuity. If you are married, you may elect, in writing, to have your benefit paid as a fixed or variable annuity, with the written consent of your spouse. An annuity is a contract or agreement that provides you (or your beneficiary) with fixed or variable payments on an investment for a lifetime or for a specified number of years. An outside company assumes payment responsibility for annuity payments.

An annuity can provide fixed or variable income for:

  • Your lifetime;
  • Your and your designated beneficiary’s life;
  • Any period offered through the annuity company.

Some annuities offer the option to provide a minimum number of payments for a specified period. For example, a single life annuity with a 36-month guarantee provides payments for your lifetime. If you die before you received 36 monthly payments, your beneficiary will receive the balance of those 36 monthly payments. If you die after 36 payments have been made to you, no further benefits are payable to your beneficiary if you die.

Contact the Fund Office for information on the types of annuities that are available to you.

Installment Payments

You may elect to receive your benefit as a fixed monthly amount in equal installments if you are:

  • Not married and elect, in writing, to waive the lump-sum payment; or
  • Married and you and your spouse elect, in writing, to waive the joint and 50% contingent survivor annuity.

The installment payments may be paid over a period of specified months (for example, 36, 60, or 120 months). Contact the Fund Office for more information about installment payment periods available to you.

If you die before all the payments you elected to receive have been made, the balance of your payments will be paid to your beneficiary.