Contact the Benefits Office

Your Defined Benefit Plan

Normal retirement age is 62.  You may retire early if you are at least 57 and have 5 years of vested service.  If you begin your pension early, it is reduced because it will be paid over a longer time.  It is reduced further if you elect a Joint and Survivor Benefit.  If you earn at least 1 vesting credit after 6/30/2000 and you retire for the first time on or after 6/30/2001, the reduction for early payment will be based on the number of months between the date payment commences and age 60.

Vesting service determines whether you are eligible to receive a pension benefit.  You earn 1 vesting credit for each plan year that you work 400 hours; a plan year is July 1 through June 30.  When you have 5 years of vested service you are 100% vested.

The automatic payment form for a single person is the 5-Year Certain and Life Annuity.  For a married participant, it is the 75% Joint and Survivor Annuity.  Other payment forms available are the 100% Joint and Survivor Annuity and the 75% or 100% Joint and Survivor Annuity with Pop-Up.  The election of a Joint and Survivor form of payment will reduce your benefit because it is covering two (2) lives.

*As always, the Plan Documents and Amendments supercede any other documents or any of the information listed above and can be changed by the Board of Trustees at any time without any prior notice.

MEET THE STAFF

Overview of Forms of Payment

Jun 08, 2010

Contact the Benefits Office     Automatic Forms of Payment Unless you elect a different form of payment, the Plan provides for the following "automatic" forms of distribution:   Unmarried Participant:    Under the Northern Illinois Pension Plan, as an unmarried participant, your pension benefit will be paid as a Five-Year Certain and Life Annuity.  A monthly benefit will be paid for your lifetime.   Married Participant:    As a married participant, your retirement benefit will be paid as a Joint and 75% Survivor benefit.  A "Joint and 75% Survivor" benefit is a monthly benefit paid for your lifetime and in the event of your death, 75% will continue to your spouse.                                Optional Forms of Payment   Five-Year Certain and Life:    This benefit is a monthly pension payable for the life of the retired participant with a guarantee of 60 monthly payments.  If the participant dies before the minimum number of payments are made, monthly payments shall continue to his/her beneficiary until the total payments made to the participant and his/her beneficiary equal the guaranteed minimum number of payments.   Joint and Survivor Annuity:    A reduced monthly pension for the life of the Participant with a Survivor benefit for the life of the survivor, equal to 50%, 75% or 100% of the amount payable during the life of the participant.  No survivor benefit shall be paid if the survivor does not survive the Participant.   Joint and Survivor Annuity with Pop-Up Feature:    A monthly pension for the life of the participant with a Survivor benefit for the life of the survivor, equal to 75% or 100% of the amount payable during the life of the participant.  If the participant's spouse predeceases the participant, the monthly benefit payable to the participant will increase to the benefit amount before the adjustment for the survivor benefit.