Available to everyone
How Long Benefits Are Paid
- You receive a single cash payment of your entire benefit. No other benefits are payable under the Plan after you receive the payment.
- The single cash payment is equal to the present value of your monthly payments, which are determined by the interest rates released each August and mortality table in effect at the time you receive the benefit.
- You can defer paying taxes on your lump-sum payment by directly rolling it over to an IRA or other eligible employer’s retirement plan. If you don’t directly roll over your payment, then you have 60 days to roll it over.
NOTE: If you don’t directly roll over your lump-sum payment, the IRS requires that 20% automatically be withheld and you will have to pay additional income taxes at tax filing time if the 20% withholding amount is not enough. If you are under age 59½, early withdrawal taxes may apply. Your payment is also subject to state and local income taxes where applicable. Some states, such as Ohio, require automatic state tax withholding, and you may be required to pay additional taxes at tax filing time if the amount withheld is not enough.
Why Choose It
- You feel comfortable investing the lump-sum value of your pension benefit so that you can provide yourself with a steady stream of lifetime income.
- You do not want to receive monthly benefit payments for life.
- You may have the opportunity to pass any remaining amount of your lump-sum payment to your heirs upon your death.
NOTE: If you’re married when payments begin, you may be required to submit spousal consent to choose this payment option.
Still Have Questions?
- Check out the Retirement Guide.