Retirement Plan Options

Choice among the following options made by retiree prior to retirement concerning the distribution of benefits:

1. option since all income payments cease upon the death of the retiree.
2. Monthly payments for lifetime of retiree with 100% survivor ship benefit income payments are paid during the time the retiree is alive and continue at the 100 percent level to a beneficiary after the death of the retiree. There is a significant reduction in the dollar amount of each monthly income payment to the retiree because beneficiary's number of payments are likely to continue for a long time.
3. Monthly payments for lifetime of retiree subject to a minimum number guaranteed to be paid income payments are paid during the time the retiree is alive. Should the retiree die before receiving a minimum number of income payments, payments are made to a beneficiary until the minimum number has been paid, at which time all payments cease. The longer the minimum number of payments guaranteed, the greater the reduction in the dollar amounts of each monthly income payment to the retiree.
4. Monthly payments for lifetime of retiree with 50% survivor ship benefit income payments paid during the time the retiree is alive and continue at the 50% level to a beneficiary after the death of the retiree. There is a reduction in the dollar amount of each monthly income payment to the retiree because beneficiary's number of payments are likely to continue for a long time.
5. Monthly payments for a guaranteed number of years income payments are made for a stipulated number of years (period certain),not for the life of the retiree. The stipulated number of years is usually 5 years, 10 years, 15 years, or 20 years. Should the retiree die before receiving income payments for the stipulated time period, the beneficiary would receive income payments until the time period expires.
6. . Lump sum (cash refund) accumulation in retiree's account distributed in one sum.

Once income payments commence under any of the above options, the retiree cannot change the option. The retiree cannot exclude the spouse from the survivor ship benefit unless the spouse waives his or her right in writing.