Bakery Drivers Local 734 - Health and Welfare Fund | Survivor Protection After Retirement
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Survivor Protection After Retirement

Survivor Protection After Retirement

Single Life Pension
Under the single life pension, you receive a monthly pension benefit for the rest of your life. Generally, pension payments under this payment form will be made until the month in which your death occurs. Your eligible spouse (or children), however, may be entitled to a pensioner survivor benefit.

50% Joint And Survivor Pension
Under this payment form, you will receive a reduced pension payable during your lifetime if you are legally married to your spouse during the 12-month period before the time your pension becomes payable, and if both you and your spouse do not elect otherwise in writing. After your death, 50% of your pension will be paid to your surviving spouse for the rest of his or her life. This survivor protection for your eligible spouse is called the joint and survivor pension.

If you do not want the joint and survivor pension, you must file a special election form with the Fund Office. If you and your eligible spouse reject the joint and survivor pension (your spouse must consent to your rejection in writing), you will receive benefits payable as a single life pension unless you elect an optional form of payment.

When you apply for your pension, the Fund Office will calculate the amount of your pension as a reduced benefit payable as a joint and survivor pension (using the method described above) and also as an unreduced benefit payable as a single life pension. This will give you a comparison of the benefits available to you so that you can make an informed decision. You and your spouse will have a 180-day period to decide whether or not you want a joint and survivor pension.

Amount
Because this pension arrangement usually results in benefit payments being paid over a longer period of time than under the single life pension, your pension benefit is reduced. To determine the amount you will receive under the joint and survivor pension, the single life pension amount is multiplied by the applicable joint and survivor reduction factor as shown in Appendix B. The applicable reduction factor is based on your age and your spouse’s age at retirement. After your death, your surviving spouse will receive 50% of your reduced pension for his or her lifetime.

Example
If you retire at age 65 and you are eligible for a regular monthly pension of $2,100 and your spouse is also age 65, your monthly pension under the 50% joint and survivor pension is determined by reducing the regular pension based on your age and the age of your spouse. In this case, the pension is reduced to 89.5% of the single life only amount. The factors are shown in Appendix B. Therefore, your joint and survivor pension would be $1,880.00 per month. This amount is payable to you for your lifetime. If your eligible spouse is living at the time of your death, he or she will receive 50% of the monthly benefit, or $940.00 for the remainder of his or her lifetime.

When applying for a pension, the Fund Office will calculate your pension amount as a reduced benefit under the 50% joint and survivor pension, using the method described in this example and also as an unreduced benefit payable as a single life pension. This will give you a comparison of the benefits available so that you can make an informed decision. You and your spouse will have a 180-day election period to decide on the form of payment.

Pensioner Survivor Benefit
If you retired with 15 years of benefit service, were receiving a single life pension and died before receiving 36 monthly payments, your eligible spouse will be entitled, upon your death, to receive the same amount of your monthly pension until a total of 36 monthly payments have been made to you and your spouse. If your spouse is deceased or dies before receiving all 36 payments, the payments would be payable to your children in equal shares.

If there are no surviving children, payments will stop.

The pensioner survivor benefit will not be payable if you:

  • Retire on a deferred vested pension;
  • Were receiving any one of the joint and survivor pensions;
  • Were receiving a pension in the form of the 10-year certain and life option;
  • Have already received 36 monthly payments; or
  • Do not have a surviving eligible spouse or child(ren).