Choice 1— Take Your Entire Benefit as a One-time Lump Sum Payment
If you elect this choice, your entire Plan benefit will be distributed as a single lump sum in Month Year. No additional payments will be made to you in the future. If the lump sum value of your benefit is less than $5,000/$7,000, your benefit will be automatically distributed as a lump sum payment.
Choosing this option allows you to decide how to invest your retirement money, including combining your lump sum payment with other retirement savings you may have. If you are married, your spouse must consent to your election of a lump sum payment unless the amount is $5,000/$7,000 or less or you are the beneficiary or alternate payee of a participant.
This option is available only during the election period between Date and Date. [If a lump sum option is available under the Plan rules, you will continue to have that option after your termination
Choice 2— Begin Immediate Monthly Pension Payments
If you elect this choice, you will begin receiving monthly pension payments in Month Year. The amount you receive will be based on the specific monthly payment option you choose (e.g., single life, joint and survivor). If you haven’t reached the Plan’s normal retirement age, your benefit [may/will] be reduced for earlier commencement.
This monthly payment option is only available during the election period between Date and Date, or when you reach the Plan’s earliest retirement age according to Plan rules. If you are less than age 59½ and still employed by Company at the time of payment, you may also owe a 10% additional income tax on early distributions you receive.
Under Choice 2, your monthly pension payments will begin in Month Year and subsequently transfer to one of the insurance companies listed in the Notice of Potential Insurers Selected to Provide Annuities (included with the Notice of Plan Benefits mailed to you in Month Year). The selected insurance company will become responsible for your benefit payment in the future. We will notify you in Month Year/later this year about which insurance company was selected as well as the timing for the transition of your benefit payments.
Choice 3— Wait to Take Your Pension Benefit at a Later Date
If you elect this choice (or if you do not make an election), you will need to wait until you are eligible under the Plan rules to start your pension benefit. When you start your benefit in the future, you may choose from any of the payment options available under the Plan, including payments to you for the rest of your life and options that provide continuing payments to your beneficiary after your death.
Under Choice 3, an annuity contract will be purchased on your behalf from one of the insurance companies listed in the Notice of Potential Insurers to Provide Annuities (included with your Notice of Plan Benefits mailed to you in Month Year). The selected insurance company will become responsible for your benefit payment in the future, and you will need to contact the insurer to start your benefit once you meet the Plan’s retirement rules. We will notify you in Month Year/later this year about which insurance company will ultimately become responsible for your benefit in the future.
This special opportunity does not affect the benefit you earned in the Plan. If you elect Choice 3 or do not make an election, you will keep your Plan benefit and all the available forms of payment as described in your Notice of Plan Benefits. However, you will need to wait until you meet the Plan’s retirement rules to start your benefit payments.
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