Normal Forms of Payment Sample Clauses

Normal Forms of Payment. How you receive your pension benefit depends on your marital status and the value of your benefit when you’re ready to retire. If you are not married on the date your benefit payments are scheduled to begin, your pension benefit is payable as a single life annuity. A single life annuity provides monthly benefits to you for life. When you die, payments end; no income will be paid to anyone else. If you are married on the date your benefit payments are scheduled to begin, your regular pension benefit is normally payable as a 60% joint and survivor annuity. A 60% joint and survivor annuity provides a reduced monthly benefit to you for your lifetime. After your death, your spouse will receive 60% of your monthly benefit for his or her lifetime. The monthly benefit you receive will be less than a single life annuity because it will be paid over two lifetimes: yours and your spouse’s. The amount of the reduction is based on your age and the age of your spouse when benefit payments begin. The joint and survivor benefit is generally equal to 95% of the single life annuity. However, the 95% factor is adjusted if the age difference between you and your spouse is more than five years. Specifically, the 95% factor is increased by ½ of one percent (up to a maximum factor of 100%) for each 12 months in excess of 5 years that your spouse’s age exceeds your age; and the 95% factor is decreased by ½ of one percent for each 12 months in excess of 5 years that your spouse’s age is less than your age. If you are receiving disability retirement benefits, your pension benefit is payable as an unreduced 60% joint and survivor annuity until your normal retirement date. As of your normal retirement date, your benefit is payable in one of the forms described above.