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Joint And Survivor Annuity
Electing this option enables you to have your retirement
payment spread over two lifetimes -- yours and the beneficiary you name (your
contingent annuitant) -- instead of over your lifetime alone. To accomplish
this, the retirement payment otherwise payable to you at retirement will be
reduced; and then, depending on which percentage you choose, after your death
100%, 66-2/3%, or 50% of your reduced retirement payment will be paid to your
beneficiary for life. The reduction will depend upon the age of your beneficiary
as well as the percentage you elect. The beneficiary may be someone other than
your spouse. Note, however, if you are
a married participant in bargaining unit employment on or after December 1,
1999, and you elect a 66 2/3% or 50% joint and survivor annuity with your spouse
as the survivor annuitant, the survivor annuity will be enhanced automatically
to a 75% survivor annuity. (This increase has no effect on your lifetime benefit.)
Important things to remember if you elect a joint and survivor
annuity option:
- If you die after you commence receiving your benefits,
lifetime payments to your beneficiary will begin upon your death.
- If your beneficiary is your spouse to whom you were married
at your benefit commencement date, and your spouse dies after you commence
receiving benefits, the Pop-Up Benefit described here applies, and
your monthly benefit will be adjusted to the amount you would have received
under a single life annuity (provided you comply with Plan procedures). Note,
the Pop-Up Benefit only applies if you are in payment status on or after January
1, 1999.
- If you choose someone other than your spouse as your
beneficiary, the Pop-Up Benefit does not apply. If your beneficiary dies after
you commence receiving benefits, your payments will remain unchanged.
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