What type of payout is best?
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ANSWER: There is no single best option because, essentially,
you don't know how long you will live or how long your spouse (or beneficiary)
will live. In some circumstances, receiving a reduced early retirement benefit
may be very costly, while in other circumstances, it may be a good choice.
A joint and survivor annuity reduces your benefit but
provides continuing benefits for your survivor's lifetime. If your chosen
survivor lives a long time after you, the J&S may turn out to be a good choice.
But if your survivor dies soon after you, total benefits paid out may end up
being lower than under a single-life annuity.
The 120 guaranteed payments annuity assures that at least
120 payments will be made - to either you, your beneficiary or your contingent beneficiary - no matter how soon you and your beneficiary die.
Contact the Fund Office before you are ready to retire
to request a calculation showing how much you would receive under each payout
option when you plan on retiring.