There are five things you may want to know about the Defined Benefit Plan
1. Normal Retirement Benefit
Normal Monthly benefits begin when a participant reaches age 65. The amount of the benefit will be the sum of the accumulated benefits earned during your years of active participation in the plan. Participants may elect to postpone the start of their benefits past age 65. The benefits will be higher for each year postponed until age 71. Your quarterly statement will show the expected normal retirement benefit. You can also request customized benefit option forms showing your projected benefits at different ages. Your Retirement Plan Specialist can assist you with customized benefit option forms. Please call 877.488.6882.
2. Early Retirement Benefits
A participant can retire any time after his/her 60th birthday and receive an early retirement benefit. The amount of an early retirement benefit is reduced because payments are stretched over a longer period of time.
3. Disability Benefit
- If a participant has been in the plan for five years and contributions from the employer are current at the time of disability, the plan will continue making the annual contribution to the Defined Benefit Plan based on salary at the time of the disability, until normal retirement age.
- Accumulated benefits are protected and continue to grow until normal retirement age.
4. Death Benefit
• The death benefit for active participants, age 65 and younger, can equal up to one year of compensation as reported to the Retirement Plan. The death benefit is vested at a rate of 20% based on the annual compensation. You are fully vested (100%) after five years of active participation.
• The surviving spouse will receive a monthly pension benefit when the participant would have reached the age of 60. The amount is calculated as if the participant had reached age 65.
5. Benefit Payment Options
Several pension payment options are possible. Your choice of pension payment option is made just before retirement.
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 for his/her lifetime. If the participant dies before the end of the guaranteed period, the beneficiary will receive payment for the guaranteed period.