 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
Choosing How Your Retirement Benefits are Paid
Your Plan offers several choices on how your retirement benefits are paid:
Topics Below
Benefits for Your Life Only
Life Only Pension
Life Only Pension with Benefit Adjustment Option
Benefits for Your Lifetime and Your Spouse's after Your Death
Employee and Spouse Pension
Employee and Spouse Pension with Benefit Adjustment Option
Benefit Payment Options
Life Only Pension
The life only pension pays a set monthly benefit for your lifetime only. The monthly benefit amount stops at your death. No lifetime benefits continue to your spouse or beneficiary after your death.
If you have recent coverage when you retire, your Plan beneficiary may qualify for a four-year certain death benefit. Also, if you choose the optional lump sum death benefit at retirement, your beneficiary receives that benefit after your death.
Single—If you are single on your pension effective date, your benefit is automatically paid this way (unless you choose another form of payment listed on your Benefit Election Form).
Married—If you are married, you can choose the life only pension instead of the employee and spouse pension as long as your spouse provides written consent. 
Life Only Pension with Benefit Adjustment Option
The life only pension with benefit adjustment option is available if you are eligible for early retirement. This benefit payment option is not available if you are taking disability retirement before your earliest retirement date (usually age 55).
With the benefit adjustment option, you receive an increased life only pension until age 62 or age 65, whichever age you choose. The actual increase depends on your age on your pension effective date and whether you want the increase to stay in effect until age 62 or age 65.
If you choose this option, the monthly benefit you receive after age 62 or age 65 is reduced.
Click here to see how your monthly benefit is reduced
if you choose age 62.
Click here to see how your monthly benefit is reduced
if you choose age 65.
If you choose the life only pension with benefit adjustment option, you receive a monthly benefit for your lifetime only. The monthly benefit amount stops at your death. No lifetime benefits continue to your spouse or beneficiary after your death.
If you have recent coverage when you retire, your Plan beneficiary may qualify for a four-year certain death benefit. Also, if you choose the optional lump sum death benefit at retirement, your beneficiary receives that benefit after your death.
Single—If you are single on your pension effective date, you can choose the life only pension with benefit adjustment option, if available, instead of the life only pension.
Married—If you are married, you can choose the life only pension with benefit adjustment option, if available, instead of the employee and spouse pension as long as your spouse provides written consent.
Click here for an example that shows three choices of how a life only pension is paid.
Employee and Spouse Pension
If you are married on your pension effective date and do not choose a different benefit payment option, your retirement benefit is paid as an employee and spouse pension. With the employee and spouse pension, you receive a monthly benefit for your life that is less than you would receive under the life only pension.
If you die before your spouse, a portion of your reduced monthly benefit is paid for the rest of your spouse's life. The benefit your spouse receives is called the spouse lifetime pension.
The reduction in your lifetime benefit depends on your age and your spouse’s age on your pension effective date. Also, the benefit payable to your spouse depends on whether you have recent coverage when you retire. Click here to see a partial list of employee and spouse reduction factors.
If you have recent coverage at retirement, your spouse receives 66 2/3% of your monthly employee and spouse pension. Otherwise, your spouse receives 50% of that amount. Remember, while you are alive your spouse does not receive any benefit payments.
If you choose the employee and spouse pension, you can also choose the optional lump sum death benefit so your Plan beneficiary receives a death benefit after your death.
If you choose an employee and spouse pension (with or without benefit adjustment option), and your spouse dies before you, your monthly benefit is increased for the rest of your life. This feature is called a "Pop-Up." Click here to learn more.
Employee and Spouse Pension with Benefit Adjustment Option
The employee and spouse pension with benefit adjustment option is available if you are married and eligible for early retirement. This benefit payment option combines features of both the life only pension with benefit adjustment option and the employee and spouse pension. This option is not available if you are taking disability retirement before your earliest retirement date (usually age 55).
With the benefit adjustment option, you receive an increased employee and spouse pension until age 62 or age 65, whichever age you choose.
As a first step, your Plan calculates what your monthly benefit would be if you chose the employee and spouse pension without the benefit adjustment option. Then it calculates the increase in your monthly benefit under the benefit adjustment option. The actual increase depends on your age on your pension effective date and whether you want the increase to stay in effect until age 62 or age 65.
If you choose the benefit adjustment option, the monthly benefit you receive after age 62 or age 65 is reduced.
Click here to see how your monthly benefit is reduced if you want the increase to stay in effect until age 62.
Click here to see how your monthly benefit is reduced if you want the increase to stay in effect until age 65.
The employee and spouse pension with benefit adjustment option provides your spouse with a lifetime benefit should you die first. The amount of your spouse’s benefit is determined as if you chose the employee and spouse pension without the benefit adjustment option and depends on whether you have recent coverage at retirement.
If you have recent coverage at retirement, your spouse receives 66 2/3% of your monthly employee and spouse pension without the benefit adjustment option. Otherwise, your spouse receives 50% of that amount. Remember, while you are alive your spouse does not receive any benefit payments.
If you choose the employee and spouse pension with benefit adjustment option, you can also choose the optional lump sum death benefit so your Plan beneficiary receives a death benefit after your death.
If you choose an employee and spouse pension (with or without benefit adjustment option), and your spouse dies before you, your monthly benefit is increased for the rest of your life. This feature is called a "Pop-Up." Click here to learn more.
Since the Pension Trust won't necessarily know about your spouse's death, notify your Area Administrative Office as soon as possible. You will need to provide a copy of your spouse's death certificate.
When this Pop-Up occurs, your monthly benefit increases to the amount you would have received under the life only pension. If you choose the employee and spouse pension with benefit adjustment option, your benefit increases to the amount you would have received under the life only pension with benefit adjustment option.
If you die first and you chose an employee and spouse pension (with or without the adjustment option), your spouse receives a spouse lifetime pension.
Your monthly benefit (and any benefits based on it) is reduced by a small percentage to provide for this death benefit. The actual reduction depends on your age on your pension effective date. Click here for a partial list of factors.
If you are married on your pension effective date, you can choose this optional lump sum death benefit as long as your spouse provides written consent.
You can choose the optional lump sum death benefit along with any other available benefit payment option. You do not have to choose the life only pension to provide this death benefit.
If you do not choose this death benefit, no optional lump sum death benefit is paid to your Plan beneficiary after your death.
If you choose an employee and spouse pension and later divorce, your employee and spouse pension stays in effect. Your former spouse remains the person who receives the spouse lifetime pension after your death.
This rule may not apply if a court enters a Qualified Domestic Relations Order that provides for conversion of your employee and spouse pension to a life only pension and certain other requirements are met. Contact your Area Administrative Office for details.
25 Years of Contributory Service
You have 1,500 covered hours in any 60-month period ending after you complete 25 years of contributory service.
Your Earliest Retirement Date
You have 1,500 covered hours in the 60-month period ending just before your earliest retirement date.
Your Pension Effective Date
You have 1,500 covered hours in the 60-month period ending just before your pension effective date.
|
||||
|
© Western Conference of Teamsters Pension Trust. All Rights Reserved.