1971- Valuations - Laserfiche WebLink

Home Browse Search

Unmodified Allowance The term "unmodified allowance" refers to the monthly life income calculated under the formula. It is important to understand that the only benefit which will be paid upon member's death after retirement will be a lump sum of $500 if the retiring member chooses the "unmodified allowance". The following table shows the percentage factor to determine "unmodified allowance" for each year of credited service. TABLE A OPTIONAL ALLOWANCES When you retire, you are given the opportunity to choose between the "unmodified" allowance and 'the options described below. Each option will pay a smaller life income than the "unmodified" benefit but will provide certain death benefits in addition to the $500: Option No. 1 guarantees the full return of your contributions regardless of how Tong you live. At death the Retirement System adds up that portion of the monthly benefit payments which were provided by your contributions (excluding benefits paid from employer contributions). If the full amount of your contributions has not been paid, the balance will be paid to your beneficiary. Option No. 2 permits you to provide a life income for yourself, and after death to have that same income continue throughout the lifetime of your beneficiary. Ret. Form 1589-2 (1/69) Age at Percentage Age at Percentage Retirement Factor Retirement Factor 50 2.000% 53 2.420% 50-1/4 2.035 53-1/4 2.455 50-1/2 2.070 53-1/2 2.490 50-3/4 2.105 53-3/4 2.525 51 2.14o 54 2.560 51-1/4 2.175 54-1/4 2.595 51-1/2 2.210 54-1/2 2.630 51-3/4 2.245 54-3/4 2.665 52 2.280 55 and 2.700 52-1/4 2.315 over 52-1/2 2.350 52-3/4 2.385 Examples Your Case 1. Age at Retirement 50 53 55 60 2. 3- Years of credited service Final ion ofactor t(from 25 00.00 25 30 8 00 14 00-00 4. Benefit Table A) 26000% 270 420% 2-00 700% 2?0 700/x 5. Benefit percentage (2)x(4) 50% 60.5% 75% 37.810 6. Unmodified Allowance $300.00 $423.50 $600.00 $264.60 $ OPTIONAL ALLOWANCES When you retire, you are given the opportunity to choose between the "unmodified" allowance and 'the options described below. Each option will pay a smaller life income than the "unmodified" benefit but will provide certain death benefits in addition to the $500: Option No. 1 guarantees the full return of your contributions regardless of how Tong you live. At death the Retirement System adds up that portion of the monthly benefit payments which were provided by your contributions (excluding benefits paid from employer contributions). If the full amount of your contributions has not been paid, the balance will be paid to your beneficiary. Option No. 2 permits you to provide a life income for yourself, and after death to have that same income continue throughout the lifetime of your beneficiary. Ret. Form 1589-2 (1/69)