Types of Plan Benefits
The Plan provides for three types of Benefits: a retirement benefit, a termination benefit, and a death benefit. To receive a benefit, the participant, or his/her beneficiary, must submit a completed application online.
Retirement Benefit
A retirement benefit is applicable when the participant turns age 62 or older and terminates from all employment (with any employer). Before the age of 65, if the participant is still working and wishes to receive the retirement benefit, funds may be rolled over to a qualified plan. At age 65 even if you remain employed by a contributing employer you will have the option to receive a benefit.
Termination Benefit
When a person under the age of 62 is terminated by a participating employer, they will be eligible for a termination benefit two months after termination of all employment (with any participating employer). If the participant is still working for another participating employer and wishes to receive the termination benefit, funds may be rolled over into a qualified plan.
Death Benefit
A death benefit applies if the participant passes away before payment of a retirement or termination benefit. Funds are payable to the participant’s beneficiary/beneficiaries.
Fund Distribution Options
When a participant becomes eligible for one of the three plan benefits, there are many ways the funds can be distributed:
Annuity
An annuity pays the participant (or participant and spouse) a fixed amount of money based on the account balance each month for the rest of the participant’s life. After the participant’s death the annuity is paid to the spouse. Unless otherwise specified on the application, an unmarried participant who has an account balance more than $5,000 will automatically receive the life annuity.
Lump sum
A lump sum distribution is a payment that is equal to the accumulated balance in an individual’s account. Lump sum payments are subject to tax penalties of up to 30% if taken before the age of 59 ½.
Rollover
A direct rollover is a distribution that is paid directly from the individual’s account into an individual retirement account (IRA) or another qualified retirement plan or fund such as a 401K. For participants who are working at a non-covered or non PCBT participating employer and are under the age of 65, this is the only form of payment available without a tax penalty.
Fixed monthly
Payment of the accumulated balance of your individual account can be paid out in fixed monthly installments for 15 years or less.
Survivor benefits
The balance of a participant’s account is paid to their beneficiary (or beneficiaries) as a survivor benefit if the participant’s death occurs prior to receiving full distribution. If the beneficiary is the participant’s surviving spouse, the survivor benefit is payable as a life annuity or lump sum. For single participants, the elected beneficiary will receive the surviving benefit as a lump sum distribution.
Age 73
Payment of benefits must legally start within sixteen months of a participant turning 73 years old if the participant is no longer employed by an employer contributing to the Plan. Participants 73 years and older who continue to be employed by an employer contributing to the Plan can opt to receive payment of benefits but are not required to do so.
Ready for a distribution or rollover?
When you’re ready to file for a fund distribution or rollover, you may request an application packet from the Administrative Office or request a link to complete the forms online via DocuSign. Applications can take up to three months to process – online applications typically process quicker.
Questions?
If you need help accessing your account, making a distribution, or have any other issue, we’re here to help.