1. Normal Retirement Benefit
Monthly benefits begin when a participant reaches age 65, the normal retirement age under the plan. The amount of the benefit will depend on the accumulated compensation upon which contributions have been paid during the years of active participation in the plan. Note: Employers can continue to contribute to the plan for participants who keep working beyond age 65. Retirement benefits to these participants will begin on their later retirement date.
2. Early Retirement Benefits
A participant can retire any time after his/her 60th birthday and receive an early retirement benefit. The amount of early retirement benefit is reduced because payments are stretched over a longer period of time.
3. Disability Benefit
If disabled, a participant will remain in the plan until retirement age.
Participant benefits are protected.
If a participant has been in the plan for five years and is contributing to the plan at the time of disability, the plan will continue making the participant’s contributions to the Defined Benefit Plan at the rate of 6% of the annual compensation earned at the time of disablement.
4. Death Benefit
The death benefit for active participants is equal to one’s current annual compensation as reported to the retirement plan. The death benefit is fully guaranteed at a rate of 20% per each year up to 100% after five years of participation.
If the death benefit to be paid is $25,000 or less, the entire benefit will be paid to the participant’s beneficiary in the year of the participant’s death. If the death benefit to be paid is more than $25,000, $25,000 will be paid to the participant’s beneficiary in the year of the participant’s death, with the balance of the benefit to be paid in two equal payments during the two years following the participant’s death. If there is no surviving beneficiary, the entire amount will be paid to the participant’s estate.
5. Benefit Payment Options
Several benefit payment options are possible depending on one's personal need.
Lifetime Only Option:
The benefit is paid for the participant’s lifetime only. This means that payments will stop at the time of the participant’s death. The benefit paid under this option provides the highest monthly amount possible under the plan.
Surviving Spouse Option:
A monthly benefit is paid to the participant upon retirement, covering both the participant and his/her beneficiary until death. The benefit is reduced because it covers both persons.
Guaranteed Five- or Ten-Year Certain Option:
Payments are guaranteed to the participant’s beneficiary for a certain number of years and to the participant for his/her lifetime. Payment will continue to the beneficiary for the remainder of the guaranteed period.