Following are some common payment methods for pension plan benefits:
- Single Life Annuity – An Annuity paid for the life of the retiree, with no additional payments to survivors.
- Joint and Survivor Annuity – An Annuity paid for the life of the retiree, with a percentage of the original Annuity (e.g., 50% , 75%, 100%) paid to a Beneficiary following the death of the retiree
- Certain and Life Annuity – An Annuity paid for the life of the retiree, with a guaranteed number of payments. If the retiree dies before receiving the guaranteed number of payments, then the remaining payments will be paid to a Beneficiary.
- Level Income Annuity – An Annuity paid for the life of the retiree, designed to provide a level amount of income when combined with Social Security Benefits. The Annuity reduces to a smaller amount (or $0) when the retiree’s Social Security Benefits begin at age 62 or 65.
- Lump Sum Payment – A single payment of the value of a retiree’s entire pension plan benefit.