Using Payment Types
Each form produces payment amounts for some combination of three people: the retiree, a spouse beneficiary, and a non-spouse beneficiary.
The following are the retiree payment types:
Field or Control |
Description |
---|---|
Retiree Amount |
Amount due to the retiree. Except in the case of lump sums, this is normally a monthly amount payable until death. |
Retiree Pre-SSRA Amount and Post-SSRA Amount |
Under a level income option, a retiree's benefit is higher before the retiree reaches social security retirement age and is lower afterwards when the retiree has presumably started receiving social security benefits. Therefore, LIO forms produce two separate retiree amounts, identified as the pre- and post-SSRA amounts. |
Pop Up Amount |
Under a pop-up form of payment, the retiree amount increases if the beneficiary predeceases the retiree. The pop-up amount is this increased retiree amount. |
The following are the beneficiary payment types:
Field or Control |
Description |
---|---|
Plan Beneficiary Amount |
Amount payable to a spouse beneficiary on the retiree's death. This can come from two different sources: a joint and survivor form (or any form that includes a percent continued) elected by the retiree, and an automatic plan benefit for which there is no actuarial reduction. |
Nonspouse Beneficiary Amount |
Amount payable to a non-spouse beneficiary after the retiree's death under a joint and survivor form of payment. |
Spouse Demonstration JS (spouse demonstration joint and survivor) |
If a married retiree selects a non-spouse beneficiary, the retiree's spouse is entitled to know the amount that would have been payable to the spouse if the retiree had named the spouse as the beneficiary. This is different from the non-spouse beneficiary amount because the actuarial adjustment is based on the spouse's age rather than the non-spouse beneficiary's age. |
Survivor Amount |
In a last to survive form, the amount due to the retiree or spouse after the other one has died. |
The following table shows the payment types produced by the various optional forms of payment:
Form |
No Beneficiary |
Spouse Beneficiary |
Non-spouse Beneficiary |
Two Beneficiaries |
---|---|---|---|---|
Certain Only |
Retiree Amount |
NA |
NA |
NA |
Joint and Survivor |
NA |
Retiree Amount Plan Beneficiary Amount |
Retiree Amount Non-spouse Beneficiary Amount |
Retiree Amount Plan Beneficiary Amount Non-spouse Beneficiary Amount |
Life Annuity |
Retiree Amount |
NA |
NA |
NA |
Level Income Option |
Retiree Amount |
Retiree Amount Plan Beneficiary Amount |
Retiree Amount Non-spouse Beneficiary Amount |
Retiree Amount Plan Beneficiary Amount Non-spouse Beneficiary Amount |
Last to Survive Annuity |
NA |
Retiree Amount Survivor Amount |
Retiree Amount Survivor Amount |
Retiree Amount Plan Beneficiary Amount Survivor Amount |
Lump Sum |
Retiree Amount |
NA |
NA |
NA |
Pop Up Annuity |
NA |
Retiree Amount Pop Up Amount Plan Beneficiary Amount |
Retiree Amount Pop Up Amount Non-spouse Beneficiary Amount |
Retiree Amount Pop Up Amount Plan Beneficiary Amount Non-spouse Beneficiary Amount |
Reversionary Annuity |
NA |
Plan Beneficiary Amount |
Non-spouse Beneficiary Amount |
Plan Beneficiary Amount Non-spouse Beneficiary Amount |
Spouse Demonstration Joint & Survivor |
NA |
Retiree Amount Plan Beneficiary Amount |
Retiree Amount Plan Beneficiary Amount |
Retiree Amount Plan Beneficiary Amount |
There are different payment forms, depending on whether a beneficiary is a spouse. In the table above, the examples in the Two Beneficiaries column indicate that there is an automatic benefit paid to the spouse when the retiree dies, and another survivor benefit paid to a non-spouse when the retiree dies.