Level Income Option Clause Samples
The Level Income Option clause establishes a payment structure where the recipient receives equal periodic payments over a specified term, rather than variable amounts. This approach is commonly used in annuity or pension agreements, where the total benefit is distributed evenly, regardless of fluctuations in investment returns or other factors. Its core practical function is to provide predictable, stable income for the beneficiary, simplifying budgeting and financial planning while reducing uncertainty.
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Level Income Option. Under this option, a Participant is paid an adjusted monthly benefit for life with payments before age 62 (or age 65, if the Participant so elects) which are higher than those made after that age.
(a) The purpose of this option is to provide (on an Actuarial Equivalent basis) monthly payments before age 62 (or age 65) approximately equal to the sum of the monthly payment from the Plan after age 62 (or age 65) and the Participant’s Social Security benefit. For purposes of calculating the option, the Participant is assumed to commence Social Security benefits at age 62 (or age 65). No payments are made after the Participant dies. This option may not be elected if the benefit at age 62 (or age 65) would be $25 per month or less.
(b) This option is available only to Participants who terminate employment after attaining Early Retirement Age and commence benefits before age 65. Thus, this option is not available for a Deferred Vested Retirement Benefit.
Level Income Option. In the case of early retirement, under this option a higher pension is paid before the Old Age Pension commences, and a lower pension thereafter, so that, combined with the Old Age Pension, a level income results.
Level Income Option. A Level Income Option was added to provide a level amount of retirement income when Retirement and Social Security benefits are combined. This option is available to employees who are under age sixty-two (62) and elect a Single Life Annuity. LUMP SUM LIMIT. The Lump sum limit is $50,000. DISABILITY BENEFITS. Pension benefits for participants who incur a disability, as defined in the Plan, after ten (10) years of Benefit Accrual Service and who have at least sixty (60) points when age and Benefit Accrual Service are added together shall continue to accrue Benefit Accrual Service while eligible to receive disability benefits under either the Social Security Act or the Company's Long Term Disability Plan. Participants may elect to commence benefits as early as age fifty-five (55), but Benefit Accrual Service will stop accruing after the benefits have commenced and an early retirement factor will apply to benefits commenced prior to reaching age sixty-two (62).
Level Income Option. A Participant may elect to receive a reduced monthly Retirement Allowance payable in a greater amount prior to age 65 and a correspondingly reduced amount, actuarially determined, after age 65, such that the total Allowance (including both the adjusted Allowance payable under the Plan and the estimated Social Security benefit (as obtained by the Participant from the Social Security Administration or as determined by the Committee)) to which the Participant shall be entitled at age 65 shall be as nearly uniform as possible, both before and after commencement of Social Security benefits.
Level Income Option. The Level Income Option provides greater monthly annuity payments prior to the Participant's 62nd birthday (determined in accordance with Exhibit E-3) and after such birthday provides reduced monthly annuity payments in an amount which, when added to the Primary Social Security Benefits which the Participant could elect to receive, approximately equals the amount of the monthly annuity paid prior to the Participant's 62nd birthday. A Participant who is entitled to an Early Retirement Benefit under