Choosing a Benefit Payment Option

The Fund offers four benefit payment options. You choose an option on the Survivor Option Form when you retire and apply for benefits. Think carefully about your options because you cannot change your choice after you retire. Before selecting a payment option, you should contact the Fund office to request a calculation of your benefits under various payment options.

When selecting a payment option, keep in mind how you want your retirement benefit to provide for your own needs while you are living, and for your beneficiary's needs after your death. If you die before selecting a payment option, your beneficiary will make the choice.

10 years certain

With this option, the Fund guarantees that you will receive benefit payments for 10 years (or 120 months). If you die before the guaranteed 10-year period your beneficiary receives the same monthly benefit for the remainder of the 120 months. If you have no eligible beneficiary, your designee receives a final lump sum payment equal to the present value balance of 120 monthly payments.

Life with 10 years certain

This option pays you full (unreduced) benefits for your lifetime. If you die before receiving 120 monthly payments, your beneficiary receives the same monthly benefit for the remainder of the 120 months. If you have no eligible beneficiary, your designee receives a final lump sum payment equal to the present value balance of the 120 monthly payments.

Example
Marilyn retires at age 60 with 15 years of service credit. Her monthly benefit is calculated at $1,050. She receives this amount until her death eight years later. Her beneficiary then receives $1,050 a month for the remaining 24 months of the guaranteed 120-month benefit period.

Joint and one-half survivor with 10 years certain

This option pays you full (unreduced) benefits for your lifetime. After your death, your beneficiary receives one-half of your monthly benefit for the rest of his or her life. The benefit is calculated according to your age and your beneficiary's age when you retire. If you both die before receiving 120 monthly payments, your designee receives a final payment equal to the present value of the reminder 120 monthly payments.

Present value
Present value is what your future benefits are worth in today's money. The Fund's actuary calculates present value of your total remaining benefits by making an assumption about the interest the money would earn if it continued to be invested in the Fund rather than being paid today.

Joint and one-half survivor with 10 years certain

This option pays you full (unreduced) benefits for your lifetime. After your death, your beneficiary receives one-half of your monthly benefit for the rest of his or her life. The benefit is calculated according to your age and your beneficiary's age when you retire. If you both die before receiving 120 monthly payments, your designee receives a final payment equal to the present value balance of your 120 monthly payments.

Example
Marilyn receives her monthly benefit of $1,050 for eight years until her death. Her beneficiary then receives half of the benefit amount, or $525 a month, until the beneficiary's death.

Joint and full survivor with 10 years certain

You may choose this option only if you have at least 15 years of service credit or you are eligible to retire. This option pays you reduced benefits for your lifetime, and after your death, your beneficiary receives the same monthly payment for the rest of his or her life. The benefit is calculated according to your age and your beneficiary's age when you retire. If you both die before receiving 120 monthly payments, your designee receives a final payment equal to the present value balance of your 120 monthly payments.

Example
Marilyn's full retirement benefit is calculated at $1,050 a month, but it is then reduced to $960 a month using a formula that estimates how long both she and her beneficiary will live. When Marilyn dies eight years later, her beneficiary continues to receive $960 a month until death.

<<< BACK