Unlike some retirement plans, with this Retirement Plan, you can choose when and how you
would like to receive your retirement benefit.
As explained under When You May Receive Retirement Benefits, you can choose
to access your Cash Balance Account any time after you leave A&B, as long as you are
vested. However, the Retirement Plan is intended to provide you with a source of income
during your retirement years.
Once you choose to begin receiving your Retirement Plan benefit, you may choose to receive
payment in the form of a…
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Lump sum payout* – as long as you are single or receive your
spouse’s notarized consent; or,
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Monthly payout – known as an annuity; there are varying forms as described below.
For information pertaining to taxes that may apply, see Taxes under
More About the Retirement Plan.
Forms of Payment
Under the Retirement Plan, you may choose the form of payment you prefer – the payment forms are summarized in the following chart. However, if you are married there is a “default” form. If you are married, your payment must be in the form of either Options 2, 3 or 4 (as shown in the chart), with your spouse as contingent annuitant. If you want to receive another form of payment, you must elect otherwise and obtain your spouse’s written
consent to a payment form that does not provide a survivor annuity to him or her.
When choosing your payment type, you should keep in mind the following: If you elect a…
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Form other than a Single Life Annuity or Lump Sum Payment (Options 1 or 5), your
monthly payment amount will be actuarially reduced so as to provide for continuing
payments to your spouse or contingent annuitant (your beneficiary) after your
death.
-
Lump sum payout (Option 5), the entire value of your Cash Balance Account will become taxable the year in which you received the payout (unless you roll it over into another retirement plan such as an IRA or another employer’s plan). In contrast, if you elect one of the annuity options, you will be taxed only on the value of the payments you received each tax year. See Taxes under More About the Retirement Plan for more details.
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Name
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Description
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Option 1
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Single Life Annuity
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Provides a monthly payment throughout your lifetime; benefits end upon your
death
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Option 2
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100% Joint and Survivor Annuity
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Provides a monthly payment throughout your lifetime and, in the event of your
death, these payments to your spouse (or contingent annuitant) until his or
her death
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Option 3
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50% Joint and Survivor Annuity
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Provides a monthly payment throughout your lifetime and, in the event of your
death, continuing payments equal to 50% of your monthly benefit will be made
to your spouse (or contingent annuitant) until his or her death
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Option 4
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75% Joint and Survivor Annuity
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Provides a monthly payment throughout your lifetime and, in the event of your
death, continuing payments equal to 75% of your monthly benefit will be made
to your spouse (or contingent annuitant) until his or her death
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Option 5
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Lump Sum
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A single (lump sum) payment equal to the value of your Cash Balance Account
at the time you receive your payment.
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