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What Is The Qualified Joint And Survivor Annuity?
Under
the qualified joint and survivor annuity, a lifetime benefit is provided for you
when your benefits commence and a survivor annuity is provided to your spouse
after your death. The amount of the monthly benefit payable to you is reduced
during your lifetime from what it would be if the pension were taken in the
single life form. Upon your death, if you were not in bargaining unit
employment on or after December 1, 1999, 50% of the benefit amount you were
receiving will be paid to your surviving spouse for his or her remaining life.
For these purposes, your surviving spouse is the eligible spouse to whom you
were married when your benefit payments began. (See the discussion "When Are
You Considered Married?".)
If, however, you are a married participant in bargaining
unit employment on or after December 1, 1999, the survivor annuity under the
qualified joint and survivor annuity has been enhanced to equal 75% of the
amount payable during your lifetime.
The amount of the reduction in your benefit depends on
your age and your spouse's age. Since the reduction will vary from one case to
another, you should ask the Fund Office for the actual amount you could expect
to receive.
Here is an example of how this pension works:
You are about to retire at age 65 on a $1,000.00 per
month normal retirement payment. Your spouse is 62 years old. With the
qualified joint and survivor annuity you will receive a lifetime benefit equal
to $871.00 a month (a reduction of 12.9% due to the difference in age between
you and your spouse) for your lifetime. When you die, assuming you retired from
bargaining unit employment after December 1, 1999, your spouse will continue to
collect 75% of your reduced retirement payment for life, or $653.25 a month.
(If you had retired from bargaining unit employment prior to December 1, 1999,
your lifetime benefit would still be $871.00 per month, but your spouse's
survivor benefit would be $435.50 per month.)
Please
note, if you are married, the qualified joint and survivor
annuity will be paid automatically unless you and your spouse give the Plan
Trustees written notice to reject the qualified joint and survivor annuity
before the date your benefit payments begin. Your spouse must agree to reject
the automatic qualified joint and survivor annuity in accordance with Plan
procedures. If, however, the value of your benefit is $5,000 or less, your
benefit will be paid in one lump sum.
When you apply for retirement payment, you will be given
the full facts and an opportunity to choose among the qualified joint and
survivor annuity and other options.
Unless the value of your benefit is $5,000 or less, the
only way you can receive another form of payment is if you and your spouse
reject your right to the qualified joint and survivor annuity and have your
spouse's signature witnessed by a notary public.
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