Pre-Retirement Death Benefits

What happens if I die prior to retirement?

In the event of your death, if you have completed at least two years of future service and you are not on deferred status, your beneficiary will be eligible to receive a lump sum distribution equal to the contributions made on your behalf up to a maximum of $55,000. However, if you have been married to the same spouse for at least the one-year period prior to your death and you are vested at the time of your death, benefits will be payable solely to your surviving spouse, in a manner described in the section entitled "Pre-Retirement Spouse’s Benefit", regardless of your beneficiary designation. If there is a Pre-Retirement Spouse’s benefit payable, the maximum Death Benefit is $8,250.00.

It is important to know that if you are not vested in the Plan and if you are not credited with at least 450 hours of credited service in two successive fiscal Plan years prior to your death, you will no longer be an active participant, and therefore, you will not be eligible for the Death Benefit provided for in the Plan.

Pre-Retirement Spouse’s Benefit:

In the event you die before retirement after earning a vested right to a future benefit and were married to your spouse for at least one year prior to your death, your spouse will be entitled to a 100% Joint and Survivor benefit beginning when you would have been age 60 or, if you are over age 60 at your death, payable the first of the month following your death. The amount would be reduced, if applicable, for early retirement. In addition to the Qualified Pre-Retirement Survivor Annuity, if you are not on Deferred Pension status your spouse will receive a lump sum death benefit equal to the contributions made on your behalf up to $8,250.00.

If you are not married or you are not married to the same spouse for at least one year prior to your death, the Death Benefit as described in the Pre-retirement Death Benefit section above shall be payable to your designated beneficiary, provided you were credited with at least 450 hours of credited service in the two successive fiscal Plan years prior to your death. It should be noted that the Pre-Retirement Spouse’s Benefit does not have a 60 month payment guarantee.

If you are not on Deferred Pension status and your spouse elects not to receive the Qualified Pre-Retirement Survivor Annuity benefit, he/she will instead receive a lump sum distribution equal to the contributions made on your behalf up to a maximum of $55,000.

If you die prior to having met the age requirement for a Normal or Early Retirement Pension, the 100% Survivor Pension payable to your spouse will not start until you would have reached your earliest retirement age under the Plan.

Should your spouse die before the commencement of her Spouse’s Benefit, and, if at the time of your death, you are not on Deferred Pension status, the Death Benefit, as described above, will be payable to your contingent beneficiary. However, it is important to know that while you are on Deferred Pension Status, you will not be eligible for the Death Benefit provided in the Plan.

If you were vested and on active status at the time of your death, your surviving spouse will be given the opportunity to elect either the Spouse’s Benefit or the Pre-Retirement Death Benefit as discussed above.

The lump sum death benefit, if paid to a surviving spouse may be rolled over to an Individual Retirement Arrangement (IRA). If paid directly to a spouse, the Fund is required to withhold 20% of the distribution in Federal Income Tax.

If the lump sum death benefit is paid to a beneficiary other than a surviving spouse, the beneficiary may elect not to have taxes withheld or, if withholding is requested, 10% of the distribution will be deducted from the distribution.

Post-Retirement Death Benefits:

Effective July 1, 1999, the Plan will provide a $10,000 death benefit for all retired participants. This death benefit is payable to your named beneficiary at the time of your death.