Benefits Glossary

For a Defined Benefit (DB) plan, the person designated to receive pension benefits in the event of the death of the participant, either before or after the participant begins receiving pension payments.

For a Defined Contribution (DC) plan, the person designated to receive a participant’s retirement account in the event of the death of the participant. Following a participant’s death, the account becomes the property of the Beneficiary.

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.

When a plan sponsor makes major changes to the plan, such as a decision to switch from one DC Plan vendor to another, there is typically a period during which participants are not permitted to make changes in their investment selections or request loans or distributions. This is known as the Blackout Period, and it can last up to 60 days.

A plan category in the ACA Marketplace which describes individual health insurance plans with the least expensive Premiums and the highest Co-payment and Coinsurance amounts. Bronze Health Plans often have high deductibles.