True or False? Changes to the monthly pension payments can still be made after retirement.
Once you have selected an option and have started receiving your pension benefits, you cannot change your monthly pension payment option.
True or False? If, in my retirement package, the monthly payment amount is higher for the life-only option than for the joint-and-survivor option, then that means the life-only option is worth more.
Even though your monthly payment amounts may be different, we calculate the different options so that they are all worth the same. A life-only pension usually provides the largest monthly payment but pays only during the retiree’s lifetime. A joint-and-survivor pension covers the retiree’s lifetime and the surviving spouse’s lifetime, and that is why there will likely be a lower monthly payment. The right option for you will depend on your unique circumstances at the time of your retirement.
True or False? If you select the 60% joint and survivor pension, your spouse will receive 40% of your pension at retirement.
False: If you select the 60% joint and survivor pension, your surviving spouse will receive monthly pension payments equal to 60% of the monthly pension payments that were paid to you. Those payments only start after the plan member passes away.
True or False? If you select the joint and survivor pension, your spouse will only start receiving monthly pension payments after your death.
The purpose of joint and survivor pension options are to provide surviving spouses with some monthly payments when the retired plan member is no longer alive.
True or False? If you select a life-only pension with a 5-year guaranteed period, you will stop receiving a monthly pension after 5 years.
In all cases, your pension is payable for your lifetime. A 5-year guaranteed period means that if you pass away before the end of the 5-year guaranteed period, your beneficiary will then receive the monthly pension payments for the remaining months until 5 years after your retirement.