Financial Planning - Optional Forms of Annuity

Optional Forms of Annuity

1. Straight Life - For annuitant's life only. No payments will be made after your death.
2. 60 Payments Guaranteed - The annuity is paid to you for life. If you die before 60 monthly payments have been made, the annuity continues to your beneficiary for the balance of the 60 payments. Monthly income will be reduced approximately 1%.
3. 180 Payments Guaranteed - The annuity is paid to you for life. If you die before 180 monthly payments have been made, the annuity continues to your beneficiary for the balance of the 180 payments. Monthly income will be reduced 3 to 6%.
4. Joint Survivor-75% Continued - The annuity is paid to you for life. Upon your death, 75% of the annuity will be paid for life to the joint survivor. If the joint survivor dies before you, the annuity stops upon your death. If the joint survivor dies before you and within five years of your annuity effective date, the annuity will be increased based on the original "For Annuitant's Life Only" option. Depending upon ages of participant and spouse, monthly income will be reduced 10 to 15%.
5. Joint Survivor-100% Continued - The annuity is paid to you for life. Upon your death, 100% of the annuity will be paid for life to the joint survivor. If the joint survivor dies before you, the annuity stops upon your death. If the joint survivor dies before you and within five years of your annuity effective date, the annuity will be increased based on the original "For Annuitant's Life Only" option. Monthly income will be reduced 10 to 25%.
6. Joint Survivor-Reduced 25% after Either Death - The annuity is paid to you and the joint survivor for life. Upon the death of either of you, the annuity will be reduced to 75% for the survivor. Depending upon ages of participant and spouse, monthly income will be reduced 5 to 15%.
7. Joint Survivor-100% Continued 180 Payments Guaranteed - The annuity is paid to you for life. Upon your death, 100% of the annuity will be paid for life to the joint survivor. If both you and your joint survivor die before 180 payments have been made, the annuity continues to secondary beneficiaries. Depending upon ages of participant and spouse, monthly income will be reduced 15 to 30%.
8. Accelerated Payment Option - Available only to participants under age 62 - The purpose of this annuity is to provide a life annuity (one of the seven explained above) plus a temporary annuity until age 62, so that the total anticipated benefit from the retirement system and Social Security will be approximately the same before and after you reach age 62.