100% Joint Life Option

 

This optional form of pension is similar to the 50% Husband and Wife Pension 66 2/3%  and 75% Joint and Survivor Options.  However, with this option, your monthly payment is reduced to an even greater degree than the other options because the benefit that will be continued after your death to your surviving spouse will be even greater.

 

The 100% Joint and Survivor Option is a two-life pension that pays an amount to you for the rest of your life and then, in the event your spouse survives you, pays the same amount to your surviving spouse or other surviving beneficiary.

 

In calculating the 100% Joint and Survivor Option, a reduction of 17% plus 0.7% for each year your beneficiary is younger than you are is applied to your normal or early retirement amount.  Similarly, if your beneficiary is older than you are, the 17% reduction is made smaller by 0.7% for each year your spouse is older.  There is always a reduction of at least 3% for this form of pension.

 

The 100% Joint Life Option is not as good a deal as the 50% Husband and Wife Pension, the 66 2/3% Joint and Survivor Option and the 75% Joint and Survivor Option.  The 100% is not the “actuarial equivalents” of these other three two-life pension.  While this benefit is still fair in its calculation, the factors used to calculate it are not subsidized to encourage its selection, as are the other three two-life pensions.  Why, then, would you consider choosing the 100% Joint Life Option?

 

In the event you (the participant) know something about your health that will make it likely that you will die at a younger age than most sprinkler fitters, this option provides the best survivor benefit to your surviving spouse.  It is important to note that you must live for at least one year after you elect this option in order for your spouse to receive the 100% survivor benefit.  If you are married and, before you retire, you find out that you are expected to die in a matter of months, the best course of action may be to not retire at all.  In the event you die before you “retire”, your spouse will receive the preretirement surviving spouse pension.  That benefit (almost always) pays more than the 75% survivor benefit to your surviving spouse.

You can see the amount that would be payable to you based on your current pension credits by using the NASI Pension Fund’s Pension Estimator.

Unlike the 50% Husband and Wife Pension or the 66 2/3rds and 75% Joint and Survivor Option, you can name anyone you wish as your survivor beneficiary under the 100% Joint Life Option. Keep in mind that the amount of benefit payable is affected by the age of the survivor beneficiary.  For information on another survivor beneficiary, you must contact the Fund office or refer to the Plan documents.

 

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