Page 43 - Pay'n Save Retirement Truat fund

41 | SOUND RETIREMENT

Example: Forms of Payment
Joan and her spouse are both 60, and Joan retires from the Sound Plan with a
standard reduced early retirement pension equal to $1,500 per month, payable
as a single life annuity. Because Joan’s age is equal to her spouse’s age, the
optional form factors are 92% (50% spouse option), 88% (75% contingent
annuity option) and 84% (100% contingent annuity option) and the annuity
payments under each option would be:

Joan’s adjusted monthly
If Joan and her And after Joan’s death
spouse select the… payment during her lifetime her spouse will receive…
will be…

Single life annuity $1,500.00 $0.00

50% spouse option $1,380.00 $690.00

75% contingent $1,320.00 $990.00
annuity option

100% contingent
annuity option $1,260.00 $1,260.00

Because the actuarial value of Joan’s benefit is greater than $5,000, she would
not be eligible to receive a lump sum payment. If she was eligible, however,
she would receive the actuarial value of her pension benefit in 1 single sum,
and her spouse would not be eligible for any additional payments following
her death.

COST OF LIVING ADJUSTMENT
If you retire before the 2016 Rehabilitation Plan applies to you,
monthly benefits earned under the Sound Plan before September
1, 2003 and payable to you, your spouse, or your surviving family
members may be adjusted each year to reflect changes in the
cost of living. See Appendix E for more detail.

DIRECT ROLLOVERS

Under federal law, you, your surviving spouse, your former spouse
who is an alternate payee under a qualified domestic relations
order (QDRO), or your beneficiary may be entitled to directly
transfer or “roll over” all or part of a lump sum payment directly
to your individual retirement account (including a Roth IRA) or
annuity, an annuity plan, or other qualified employer (or trust-
sponsored) retirement plan, including a 403(b) or 457(b) plan.
Unless a direct rollover is made, the Administrative Office must
withhold 20% of the payment for federal income taxes. Because
the rollover applies only if you are receiving a small lump sum
payment (see page 40), most benefits will not be eligible to
rollover. You will be notified upon your retirement if the benefit
distribution you receive from the Trust will be an eligible rollover
distribution.