Summary Plan Description (Revised January 1, 2012)

Retirement Payment Options

Single Life Benefit

A single life benefit provides a monthly benefit for your lifetime. There is no continuing income for your spouse's or beneficiary's lifetime, except that if you die before the first 60 monthly payments have been made, your spouse or beneficiary will receive any outstanding payments until a total of 60 payments have been made. With this benefit option your monthly income equals your total monthly benefit less any reduction for early retirement (if applicable). The example illustrates how to calculate a single life benefit.

  • For additional information about a single life benefit, please see Article 6.6.
Joint and Survivor Benefit

If you are married when you retire, you may want a benefit option that provides an income to your spouse after you die (this payment option is also available if you are single). The following three joint and survivor benefit options are available. Joint and survivor factors are listed in Table 7.

50% Joint and Survivor Benefit

With this benefit option you receive a monthly benefit for life and, if you die before your spouse or other designated beneficiary, he or she receives 50% of that amount for his or her life. Your monthly income is your total monthly benefit less the appropriate reduction for early retirement (if applicable), less the appropriate reduction for the survivor benefit. The example illustrates how to calculate a 50% joint and survivor benefit.

75% Joint and Survivor Benefit

With this benefit option you receive a monthly benefit for life and, if you die before your spouse or other designated beneficiary, he or she receives 75% of that amount for his or her life. Your monthly income is your total benefit less the appropriate reduction for early retirement (if applicable), less the appropriate reduction for the survivor benefit. The example illustrates how to calculate a 75% joint and survivor benefit.

100% Joint and Survivor Benefit

With this benefit option you receive a monthly benefit for life and, if you die before your spouse or other designated beneficiary, he or she receives 100% of that amount for his or her life. Your monthly income is your total monthly benefit less the appropriate reduction for early retirement (if applicable), less the appropriate reduction for the survivor benefit. The example illustrates how to calculate a 100% joint and survivor benefit.

Pop-Up Benefit

If you begin receiving one of the joint and survivor benefits and your spouse or other designated beneficiary pre-deceases you, your monthly income is increased to the amount that would have been payable with a single life benefit on your retirement effective date. This increase is effective for the month following your spouse or other designated beneficiary's death.

Similarly, if you and your spouse divorce after you begin receiving one of the joint and survivor benefits, and your spouse agrees in a Qualified Domestic Relations Order (QDRO) to relinquish all of his or her rights to your retirement benefits, your benefit is increased to the amount that would have been available under a single life benefit on your retirement effective date. This increase is effective for the month following the effective date in the provision of the QDRO that specifies the relinquishment.

If you receive either of these pop-up benefits, there is no five year guarantee (no survivor benefits to any beneficiary after your death).

Calculations

Single Life Benefit

You retire at age 65 with a single life benefit of $2,000.00:

Total Monthly Benefit = Monthly Benefit
$2,000.00 = $2,000.00

In this example, your $2,000.00 total monthly benefit is not reduced because there is no reduction for a survivor benefit. This monthly income is payable for your life. However, if you die sometime during the first five years of retirement, any remaining guaranteed payments would be made to your beneficiary. After all remaining guaranteed payments have been made to your beneficiary, the monthly benefit ceases. For example, if you died three years after your retirement effective date (36 monthly payments), your beneficiary receives the 24 remaining guaranteed benefits. After that, no monthly benefit is paid.

50% Joint and Survivor Benefit

You retire at age 62 under special early retirement with a total monthly benefit of $2,000.00. Your spouse is two years younger than you and you elect a 50% joint and survivor benefit:

Total Monthly Benefit x Joint and Survivor Factor = Monthly Benefit
$2,000.00 x .870 = $1,740.00
$1,740.00 per month for your lifetime
$870.00 per month for your surviving spouse's lifetime

In this example, your $2,000.00 total monthly benefit was reduced by $260.00 to provide 50% of your monthly income for your surviving spouse's lifetime.

75% Joint and Survivor Benefit

You retire at age 62 under special early retirement with a total monthly benefit of $2,000.00. Your spouse is two years younger than you and you elect a 75% joint and survivor benefit:

Total Monthly Benefit x Joint and Survivor Factor = Monthly Benefit
$2,000.00 x .816 = $1,632.00
$1,632.00 per month for your lifetime
$1,224.00 per month for your surviving spouse's lifetime

In this example, your $2,000.00 total monthly benefit was reduced by $368.00 to provide 75% of your monthly income for your surviving spouse's lifetime. 

100% Joint and Survivor Benefit

You retire at age 62 under special early retirement with a total monthly benefit of $2,000.00. Your spouse is two years younger than you and you elect a 100% joint and survivor benefit:

Total Monthly Benefit x Joint and Survivor Factor = Monthly Benefit
$2,000.00 x .770 = $1,540.00
$1,540.00 per month for your lifetime
$1,540.00 per month for your surviving spouse's lifetime

In this example, your $2,000.00 total monthly benefit was reduced by $460.00 to provide 100% of your monthly income for your surviving spouse's lifetime. 

 

Table 7
Joint and Survivor Benefit Factors
If you select a joint and survivor benefit option, your total monthly benefit is adjusted by the appropriate factor. Determine the age difference between you and your spouse (or other beneficiary) to the nearest year on your retirement effective date. Then select the factor based on the appropriate joint and survivor benefit option. Round up at six months.
Age Difference 50% Joint and Survivor 75% Joint and Survivor 100% Joint and Survivor
Each additional year older +.005 +.007 +.008
+10 Years .930 .900 .866
+9 .925 .893 .858
+8 .920 .886 .850
+7 .915 .879 .842
+6 .910 .872 .834
+5 .905 .865 .826
+4 .900 .858 .818
+3 .895 .851 .810
+2 .890 .844 .802
+1 .885 .837 .794
Same age as your beneficiary .880 .830 .786
-1 Year .875 .823 .778
-2 .870 .816 .770
-3 .865 .809 .762
-4 .860 .802 .754
-5 .855 .795 .746
-6 .850 .788 .738
-7 .845 .781 .730
-8 .840 .774 .722
-9 .835 .767 .714
-10 .830 .760 .706
Each additional year younger -.005 -.007 -.008