7 HOW BENEFITS ARE PAID
The Pension Plan generally provides monthly payments. When you retire, you have the opportunity to choose a form of payment.
You will make your choice when you apply for benefits at retirement. If you are married on your Retirement Date, your Spouse must consent to any form of payment other than a Joint Annuity or payment to any Beneficiary other than your Spouse. Neither you nor your Spouse can revoke this consent. If spousal consent cannot be obtained, your form of payment will be defaulted to the 50% Joint Annuity.
Generally benefit amounts are expressed as a Straight Life Annuity and benefits payable in other forms are actuarially reduced from the Straight Life Annuity form. However, for benefits earned before July 1, 1990; see Appendix F for available forms.
The terms “actuarially adjusted” or “actuarially reduced” and similar terms in this SPD refer to an adjustment that ensures that two different forms of payment have equal value. The actuarial factors used to make the adjustment are based on the Unisex Pension Mortality Table projected to 1984 and 8% interest. The difference in ages between you and your Joint Annuitant is used to calculate the amount of annuity payable under the option you select by multiplying the standard form of benefit by the appropriate factor.
- 7.1 Straight Life Annuity
- 7.2 Five Year Certain Life Annuity
- 7.3 Joint Annuity
- 7.4 Automatic Changes in the Form of Benefit Payment
- 7.5 When Payments Begin
- 7.6 Payment of Small Annuities