Pension Plan Summary Plan Description

B. Married Participant—Joint And 50%, 66.7% or 100% Survivor Annuity

When you retire, you will be given the opportunity to choose the way you want your pension to be paid. The forms of payment are described in this section.

  1. Married Participant—Joint and Survivor Annuity. Under federal law, the normal form of benefit under the Plan for a married Participant is a Joint and 50% Survivor Annuity. You and your Spouse may waive that form of payment in favor of a Single Life Annuity or a Joint and 66.67% or 100% Survivor Annuity.

    Under a Joint and Survivor Annuity, the Plan will provide pension benefits for your life and a percentage of the benefit payable during your lifetime to your surviving Spouse for his or her lifetime. As a result, there is a reduction in the monthly pension benefit that would be payable for your life only. This reduction is based on the survivor benefit selected (50%, 66.7% or 100%), your age, and the age of your spouse at the date of your retirement as set forth in actuarial tables available upon written request of the Plan Office.

  2. Spousal Waiver/Beneficiary Designation. A married Participant and Spouse's decision to waive the Joint and Survivor Annuity is effective only if the Participant's lawful Spouse consents to such waiver, and the consent is witnessed by a Plan representative or notary public. If you are married you are not allowed to designate a beneficiary other than your lawful Spouse without your Spouse's written consent. Your “Spouse” means your lawful wedded spouse to whom you have been married for at least one year at the date of your retirement.
    If a married Participant subsequently desires to revoke such beneficiary designation and to choose another non-Spouse beneficiary, your Spouse must consent to such revocation and alternative beneficiary selection.

  3. Explanation Given to Participant. At the time of your retirement the Plan will provide a written explanation of the Joint and Survivor Annuity as well as the Plan’s other benefit options.

    To comply with the federal requirement that you and your Spouse, if you are married, be provided information during the 90-day period immediately prior to your proposed pension commencement date, your completed application for payment of your pension should be received by the Plan Office at least 120 days before any proposed date for commencement of your pension. Otherwise, payment of your retirement benefits could be delayed.

  4. Important Facts to Know About a Joint and Survivor Annuity
    1. One-Year Marriage Requirement. You are not eligible for the Joint and Survivor Annuity benefit form unless you have been lawfully married at least a year prior to your retirement.

      If you have been legally married for less than one year at the date your Pension commences, your pension will be paid in the form of a Single Life Pension for your life only, but may be converted to the Joint and Survivor Annuity form as of the first of the month succeeding the first anniversary date of your marriage. You and your Spouse may, however, jointly file a written waiver of payment of the Joint and Survivor Annuity form with the Plan Office before the first anniversary of your marriage.

    2. Reason for Decreased Benefit. Because the benefits are payable for two lives -- yours and your Spouse's -- the amount of your benefit will be reduced. If, for example, your Spouse is much younger than you, the reduction will be even greater to reflect your Spouse's longer life expectancy.

    3. Spouse's Death Has No Effect. If you elect Joint and Survivor coverage upon retirement, you may not withdraw such coverage after your first Pension payment has been made. If your Spouse dies before you, your Pension will not be increased to the level you would have received had this coverage not been provided, unless you choose the Pop-Up Joint and Survivor Annuity option.

    4. Pop-Up Joint and Survivor Benefit. If you select the Pop-Up Joint and Survivor Annuity option and your Spouse predeceases you after your benefits commence, your benefit will revert, effective the first of the month following your Spouse’s death, to the amount you would have received had you selected the Single Life Pension. In order to provide a Pop-Up benefit in the event of the death of your Spouse, there is a higher actuarial reduction applied to your benefit than would otherwise apply if you had elected a Joint and Survivor Annuity without the Pop-Up feature.

      If the Pop-Up benefit is elected, the reduction in your monthly benefit is determined by actuarial factors available in the Plan Office upon request.

      If you retired prior to January 1, 1998, and elected this option, the Pop-Up benefit occurs only if your spouse or beneficiary predeceases you within five years of your Joint and Survivor Annuity starting date. If you retire after December 31, 1997, there is no time limit placed on the Pop-Up feature.

    5. Irrevocable Once Payments Commence. If you elect a Joint and Survivor Annuity, you may not withdraw or change such coverage after your first pension payment has been made.

    6. Later Divorce and Remarriage Do Not Impact Benefit. If you retire on a Joint and Survivor Annuity and subsequently divorce your Spouse, your pension will not be increased to the level you would have received had the reduced survivor coverage not been provided. Your pension will remain permanently at the reduced amount. In most instances, your former Spouse will continue to be entitled to a survivor pension upon your death (unless a court order provides otherwise). Moreover, if you subsequently marry a different person, you may not transfer your survivor benefits coverage to your new Spouse.

See Sample Pension Benefit Elect Form