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Death Benefit Plan
Hard as it is to face, no one is exempt from the possibility of a terminal illness, deadly accident or natural disaster that can strike at any time. To help your loved ones deal with their immediate and ongoing financial needs, the plan provides life insurance and other benefits payable to your eligible survivors upon your death. Those benefits include: - group term life insurance payable at the time of your death; and
- benefits payable from the Retirement Plan.
Your Group Term Life Insurance Coverage Your designated beneficiary will receive an immediate lump-sum payment of group term life insurance at the time of your death. The amount payable is based on your annual compensation upon which premiums were last paid and your age and length of membership at the time of your death, as presented on the chart below. The death benefit is not taxable income to your beneficiaries.
If your death occurs before you have two years of membership, your group life insurance will be as presented on the chart below.
Your Life Insurance Coverage if You Have Two or More Years of Membership
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Younger than 41
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500%
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41 but not yet 51
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400%
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51 but not yet 61
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300%
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61 but not yet 66
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200%
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66 to retirement
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150%
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Your Group Term Life Insurance Coverage if You Have Less Than Two Years of Membership
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1 Yr or Less
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1+ to Less Than 2 Yrs
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Younger than 41
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166%
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333%
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41 but not yet 51
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133%
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266%
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51 but not yet 61
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100%
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200%
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61 but not yet 66
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66.6%
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133%
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If Your Death is Accidental
Regardless of your length of membership, your group term life insurance
amount increases by an additional 100% of annual compensation if your
death is accidental.
Early Partial Payment of Your Group Term Life Insurance
If you are terminally ill and are expected to die within 24 months, you
can request early payment of up to half the value of your group term
life insurance benefit. The rest of your benefit is payable after your
death.
Death Benefits From Your Retirement Plan Account
If you die before retirement, the full value of your Retirement Plan
account becomes payable. How and when it is paid out depends on your
marital status at the time of your death.
If Single
If you are single, the full value of your account is payable to your
designated beneficiary. If your beneficiary does not survive you, your
account becomes part of your estate.
If Married and a Permium-Paying Member
Your spouse may be eligible for one or more of the following:
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Defer payment of your Retirement Plan account to a later date.
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Convert the account to a single-life monthly annuity with the
guarantee of a minimum of 10 years of payments. If your spouse
dies before receiving 120 monthly payments, his or her beneficiaries
will receive the balance of the 120 months.
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Widowed spouses of members with small accounts receive a minimum
annuity immediately following your death, payable for life with
the guarantee of a minimum of 10 years of payments. If the widowed
spouse dies before receiving 120 monthly annuity payments, his or her
beneficiaries will receive the balance of the 120 months.
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Within certain limitations set by the plan, a widowed spouse is eligible for partial distributions on the member's Retirement Plan account balance prior to retirement. Withdrawals are eligible for rollovers.
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Take out a loan on a portion (maximum 50%) of your Retirement Plan
account not converted to an annuity. The balance can be deferred for
conversion to an annuity and/or distribution at a later date.
Children's Allowance
If you die while actively participating in the Plans, your surviving spouse
will receive an additional monthly benefit for each birth and adopted child
under age 21. The amount of the allowance is equal to the value of 100 annuity
units.
The children's allowance will be payable to your spouse monthly until the
child(ren) reach age 21. If your spouse dies before the children reach age
21, the children's guardian will receive payments on behalf of the children.
Medical Plan Coverage
If your spouse and any dependent children were covered by a medical plan paid
by your employer, they may be eligible for the plan to pay the premiums for
two years.
Death Benefit in Retirement
The Death Benefit Plan provides a benefit for your survivor or named beneficiary
if you die in retirement. The amount is $4,000, payable as a single tax-exempt
sum. To qualify, you need at least 15 years of Retirement Plan membership and
must retire from premium-paying membership.
Adding it All Up
Your death benefits include:
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Your group term life insurance is immediately payable to your spouse or beneficiary, based on your age at the time of your death and your reported compensation.
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Your group term life insurance benefit will include an additional year's annual pay if you die from accidental causes.
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Your Retirement Plan account is payable to your spouse or named beneficiary when you die.
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Your eligible children will be entitled to a monthly allowance until they reach age 21.
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Your medical coverage, for your spouse and dependent children, if any, may be continued for two years after your death at no cost to your spouse.
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You will receive, in retirement, a group term life insurance benefit of $4,000 if you are eligible, based on years of Retirement Plan membership.
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