At the time of their retirement, Defined Contribution Plan participants may choose one of the options below to determine how they would like the funds in their retirement account to be disbursed to them. As of the April 2007 Board of Administration meeting, active or inactive participants may withdraw their funds at any time. This may be done by contacting the Human Resources office. The retirement options available are:
- By monthly installments of principal and interest to be paid over the life expectancy of the participant.
A monthly benefit is calculated using the total account balance to be paid as long as the participant survives.
- By monthly installments of principal and interest to be paid over the life expectancy of the participant and beneficiary.
A monthly benefit is calculated on the total account balance to be paid as long as either the participant or beneficiary survives.
- By the purchase of a single-premium, non-transferable annuity contract (either fixed, investment, or variable) from a legal reserve life insurance company, containing such options and provisions as the Benefits Committee determines. If such a contract is purchased, then to the extent of the amount of the account balances used to purchase the contract, the interest of the participant or beneficiary in the Trust Fund will cease upon the payment of the contract premium to the insurance company.
An annuity may be purchased from another company with the funds held in the participant’s account.
- A. By payment of a lump sum. (The total balance would be paid out directly to the participant.)
B. By a combination of an annuity contract described in Item 3 above, and a lump sum of the remaining amount of the account balance. (A lump sum would be paid to the participant in addition to an annuity purchase.)
C. By a direct rollover to an individual retirement account or other eligible retirement plan specified by the participant (or beneficiary if participant is deceased). (The total balance would be transferred to an IRA, TDA (tax deferred annuity), or other retirement plan.)
- By monthly installments of principal and interest to be paid over a period elected by the participant (or beneficiary if the participant is deceased) from among alternative periods established by the Benefits Committee.
This would permit the total balance to be paid out within a certain period of time and may be requested within a ten-year period.
- By monthly payments of interest only. This option is payable through the later of either (1) age 70 or (2) date of retirement, at which time this option cannot be renewed and another form of distribution must be elected.
A monthly benefit is calculated only on the interest the account gains, including any loss, until age 70 when the participant must choose another option. A three-year rolling average of the interest is used to determine the monthly payment.