The law requires that your Annuity Benefit account be converted to monthly payments in a single life annuity (for an unmarried participant) or a joint and 50% survivor annuity (for a married participant), unless you and your spouse, if any, agree to payment in a different form. These options have some differences from the payment of the Accrued Monthly Pension.
- The single life annuity only lasts for your life. Benefits stop at your death with no 60-month guarantee.
- The conversion of your Annuity Account Balance to a monthly benefit and the reduction for early retirement are both calculated under IRS rules (sometimes called “Section 417(e) rates”) which change each year. This calculation is completely different from the formula used to determine your Accrued Monthly Pension and the early retirement reduction factors for the Early Retirement pension benefit do not apply.
The conversion from a Straight Life form of payment to a Joint and Survivor benefit uses the same factors for actuarial equivalence in the Plan document as does the Accrued Monthly Pension benefit.
You can “retire” and begin payment of the Annuity Benefit account at any time that you are eligible to receive the account – even if you are not yet eligible to receive an Accrued Monthly Pension benefit at the time. For example, once you have left construction work and have had no contributions to the Plan for your work for 24 months, you are eligible to receive benefits from your Annuity Account.