Frequently Asked Questions
Q. | Can the option I elect at the time I begin receiving my benefit be changed at a later date? |
A. |
The option you elect at retirement may not be revoked or changed unless:
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Q. | Is there a required date upon which I must start to receive my pension benefit? |
A. |
Yes. Your benefit must go into pay status no later than your “Required Beginning Date.” This is April 1 of the calendar year following the one in which you reach age 72 (or the date you stop working under the Plan, if later). Under federal law, you may be subject to tax penalties if your benefit does not start on or before your Required Beginning Date. For this reason (and others), it is important that you make sure Retirement Services always has your latest contact information. [Section VI(F)] |
Q. | Can my Retirement Benefits increase after retirement? |
A. |
No. Regardless of the monthly payment option you choose, your benefit is paid as a Level Benefit. |
Q. | What is a Level Benefit |
A. |
The benefit you receive will remain constant unless benefits are increased for all retirees as a result of a Plan amendment on a special one-time-only basis. |
Q. | How is the amount of my monthly Retirement Benefit affected by the payment form I select? | ||||||||||||||||||||||
A. |
The amount of your benefit is adjusted for different payment forms to reflect the different expected total payouts associated with different payment forms. Payment forms are considered “actuarially equivalent,” based on standard actuarial factors specified in the Plan (meaning the total value of benefits over your lifetime is expected to be the same). As an example, suppose you retired at age 62, with an earned monthly benefit of $1,000. This amount, determined from the Plan’s benefit table based on your Hours of Service each Plan Year, is payable in the Five Years Certain & Life payment form. Suppose further that you are married and your spouse also was age 62 when you retired. The following table shows your monthly benefit under all available payment options:
[Section IX(l)]
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