Forms Of Payment

If You Are Not Married — Lifetime Pension with 60 Months Guaranteed


If you are not married on the date you begin your pension, the normal form of payment is the Lifetime Pension with 60 Months Guaranteed. This is also the form of payment if you are married and you and your spouse voluntarily elect to receive this form of payment instead of the Joint and Survivor Pension.

With the Lifetime Pension with 60 Months Guaranteed, you receive full monthly payments for as long as you live. If you die before you have received 60 monthly payments, the remainder of the 60 payments will be paid to your properly designated beneficiary. You and/or your beneficiary will receive a combined minimum of 60 payments. If you live longer than 60 months, you will receive benefits for your lifetime; however, your beneficiary will not receive payments after your death.

The Trustees may authorize a single lump sum payment for any monthly payments remaining after your death. This lump sum amount will be calculated by multiplying the amount of the monthly pension by the number of months remaining times a factor to account for the fact that your survivor will be earning interest on the remaining payments rather than the Plan. The factor equals 1.0 minus .0025 times the number of remaining payments.


Jeff dies after receiving a monthly pension of $1,000.00 per month for 24 months. Since he was not married, his benefit is paid as a Lifetime Pension with 60 Months Guaranteed. Following his death, his beneficiary may elect to receive the remaining 36 payments (60-24) in one lump sum as follows:

Step 1: Calculate the Survivor Interest Factor:




(.0025 x 36 months)


.91 or 91%

Step 2: Calculate the lump sum amount:



36 months









Jeff’s beneficiary will receive a lump sum payment of $32,760.00.

If You Reject the Joint and Survivor Annuity— 
Qualified Optional Survivor Annuity (QOSA)

If you elect out of the 60 Month Guaranteed benefit and waive the Joint and Survivor Annuity as described above, you may elect a Qualified Optional Survivor Annuity (QOSA).

This payment form provides you with a reduced monthly benefit for you and your spouse’s lifetime. This is a smaller monthly payment than a lifetime annuity because, if you die before your spouse, he or she will continue to receive 75% of your reduced pension for his or her lifetime.

Pop-Up Provision

The Plan contains a “Pop-up Provision” which will increase your benefit from a QOSA Pension amount if your spouse dies before you. Your increased benefit will equal the amount of your benefit as calculated prior to applying reduction provisions for the QOSA form of payment.*

To benefit from the effect of the Pop-up Provision, you must request it in writing and furnish valid proof of your spouse’s death to the Board of Trustees.**


* If the present value of any annuity payment under the Plan is less than $5,000.00, the Plan will automatically pay out the entire benefit in one lump sum.

** These provisions do not apply in divorce situations.