If your Annuity Plan benefit is $1,000 or less, your benefit will automatically be paid to you as a lump-sum payment. The Annuity Plan offers these forms of payment if your benefit is greater than $1,000 and you meet the requirements for the specific form of payment:

  • Joint and 50% survivor annuity (if you are married),
  • Joint and 75% survivor annuity (if you are married),
  • Single sum cash payment or a non-periodic partial cash payment,
  • Fixed or variable annuity, and
  • Installment payments.

The joint and 50% or 75% 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.

You (or your spouse for survivor benefits) will need to coordinate with the annuity company on any issues concerning your annuity.

Joint and 50% Survivor Annuity

The normal form of payment for married participants is the joint and 50% survivor annuity. If you are married, to receive a different form of payment, you and your spouse must waive the joint and 50% survivor annuity.

The joint and 50% 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.

Joint and 75% Survivor Annuity

An optional form of payment for married participants is the joint and 75% survivor annuity. If you are married, you may choose that your benefit will be paid as a joint and 75% survivor annuity without waving the joint and 50% survivor annuity.

The joint and 75% 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.

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 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. You and your spouse must elect, in writing, to waive the joint and 50% survivor annuity.

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, or
  • 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 receiving 36 monthly payments, your beneficiary receives the remainder of those 36 monthly payments. If you die after 36 payments have been made, no further benefits are payable to your beneficiary.

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.