Defined Contribution Plan
What Will I Receive at My Normal or Early Retirement Date?
Presuming that you elect to retire after reaching your Normal or Early Retirement Date and sever all employment with all contributing employers, what you will receive will depend upon your Individual Account balance and the form of distribution you elect.
If you are married, your Individual Account will be distributed as a 50% Joint and Survivor Annuity unless you elect some optional payment form and your spouse consents to your election. The 50% Joint and Survivor Annuity provides you with monthly payments for your lifetime. If your spouse survives you monthly payments will continue to your surviving spouse for your spouse’s lifetime in an amount equal to 50% of the payments you were receiving. This annuity payment is provided through an individual annuity provided by Mass Mutual based upon your Individual Account balance.
With your spouse’s consent you can elect to receive your payment in the form of a single lump sum. In almost all instances this single lump sum payment can be made in the form of an eligible rollover distribution to a qualified Individual Retirement Account you have established with an appropriate institution.
Pursuant to an annuity contract as it may exist from time to time between Mass Mutual and the Trust, you may also receive benefits in the form of a single life annuity, 66 2/3% Joint and Survivor Annuity, 75% Joint and Survivor Annuity, 100 % Joint and Survivor Annuity, Certain and Life Annuity benefit and Full Cash Refund Annuity.
If you are not married, distribution of your Individual Account will be made as a single life annuity unless you elect otherwise. A single life annuity provides payments for your lifetime with no continuing payments after your death. A single individual may also elect payment in the form of a single lump sum payment and in almost all instances may take that payment in the form of an eligible rollover distribution to an IRA established with an appropriate institution.
Pursuant to the annuity contract a certain and life annuity and full cash refund annuity is also available.
If an Individual Account balance is $5,000 or less, it will always be paid in a single lump sum to both married and unmarried Participants. There is no option to elect any other form of benefit but in most instances, it can take place in the form of an eligible rollover distribution to an Individual Retirement Account you have established with an appropriate financial institution.
While contributions to your Individual Account pursuant to the terms of a Collective Bargaining Agreement or Participation Agreement are tax free and investment gains credited to your Individual Account are tax free, distributions from your Individual Account will be reported as taxable income. Taking a lump sum distribution of your Account in any form other than an eligible rollover distribution may have significant adverse tax consequences to you.