Pension Plan Summary Plan Description
7.1 Available Forms of Normal and Early Pensions
A Normal Pension and Early Pension may be paid out in any of the following forms:
- Single life annuity
- Joint and 50% survivor annuity
- Joint and 66⅔ survivor annuity
- Joint and 75% survivor annuity
- Joint and 100% survivor annuity
Single Life Annuity
A single life annuity is a monthly payment made on or about the first day of the month through the month in which you die, and is the default form of benefit for an unmarried Participant.
Joint and Survivor Annuity
A joint and survivor annuity is a monthly payment made on or about the first of the month through the month in which you die, then a monthly payment to your surviving spouse or other designated beneficiary (referred to as the "survivor annuitant") through the month in which the survivor annuitant dies. The amount of the monthly payment to the survivor annuitant depends on the percentage annuity selected. If you select a joint and 50% survivor annuity, for example, the payment made to the survivor annuitant after your death will be 50% of the amount that was paid while you were alive. A joint and 50% survivor annuity is the default form of benefit for a married Participant.
To cover the additional cost to the Plan of covering the survivor annuitant should you die first, the monthly payments are smaller than under a single life annuity. The greater the percentage survivor annuity, the lower the monthly payment that will be made to you while you are living (e.g., a joint and 100% survivor annuity will pay you a lower monthly benefit than will a joint and 50% survivor annuity). Monthly payments will also be lower should you select a joint and survivor annuity with a relatively young spouse or other beneficiary to account for the expected longer life expectancy of the survivor annuitant.