A STRAIGHT LIFE RETIREMENT ALLOWANCE PROVIDES ME WITH PAYMENTS FOR LIFE. CAN I FINANCIALLY PROTECT MY BENEFICIARY BY CHOOSING SOME OTHER FORM OF PAYMENT?
Yes, you can provide lifetime financial protection for your beneficiary by choosing Option 2 or Option 3. This choice must be made when you retire. You cannot change the option of your beneficiary after you cash a retirement check. The amount of an Option 2 or Option 3 retirement allowance is based upon the amount of your straight life retirement allowance and the age of you and your beneficiary. These amounts decrease with increasing age, for the same reasons that insurance premiums increase with increasing age. When you choose Option 2 or Option 3, in a sense you are paying monthly insurance premiums to provide a survivorship benefit for your beneficiary upon your death. The “premium” is the difference between the straight life amount to which you are entitled and the amount you receive under the optional payment plan. Therefore, the difference between the amount of your straight life retirement allowance and the amount of the Option 2 or Option 3 retirement allowance represents the
Yes, you can provide lifetime financial protection for your beneficiary by choosing Option II, Option A or Option III. This choice must be made when you retire. You cannot change the option of your beneficiary after you cash a retirement check. The amount of an Option II, Option A or Option III retirement allowance is based upon the amount of your straight life retirement allowance and the age of you and your beneficiary. These amounts decrease with increasing age, for the same reasons that insurance premiums increase with increasing age. When you choose Option II, Option A or Option III, in a sense you are paying monthly insurance premiums to provide a survivorship benefit for your beneficiary upon your death. The “premium” is the difference between the straight life amount to which you are entitled and the amount you receive under the optional payment plan. Therefore, the difference between the amount of your straight life retirement allowance and the amount of the Option II, Option
Related Questions
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- What if the beneficiary attends a school that is not eligible to recieve payments from the Plan?
