The Co-op Retirement Plan offers death benefits to your surviving spouse or named beneficiary (ies) if you die before you retire. Importantly, a surviving spouse or beneficiary must apply to receive any of the following death benefits before they will begin.
If you are
not vested at the time of your death, your spouse or beneficiary will receive a refund of your employee contributions and the interest you have accumulated.
If an
active vested participant dies before early retirement eligibility (typically age 55), your spouse is generally given the option to (a) withdraw your contributions and interest in a lump sum and to receive the remaining benefit as the survivor portion of a 100% Joint and Survivor benefit at a future date (generally starting on the first day of the month after you would have reached age 55), or (b) receive the entire death benefit as the survivor portion of a 100% Joint and Survivor benefit as of such date.
If an
active vested participant dies after reaching early retirement eligibility (typically age 55, or earlier if the participant was eligible at the time of his death for the Rule of 85), the spouse is eligible to begin to receive the survivor portion of the 100% Joint Annuity benefit on the first of the month following your death.
If a
vested unmarried participant dies before retiring– but would have been eligible for a retirement benefit – the beneficiary (ies) will receive a monthly benefit payable for 10 years as if the participant had elected the 10-Year Guaranteed Benefit payment option.
If a
vested unmarried participant would not have been eligible for a retirement benefit, the beneficiary (ies) will receive a lump sum distribution of the participant’s contributions and interest and a monthly benefit payable as a 10-Year Guaranteed Benefit with respect to the employer-provided portion of the participant’s benefits.
Lump Sum Death Benefit
The Co-op Retirement Plan also provides a Lump Sum Death Benefit to the beneficiary of a participant who retires from active employment after becoming eligible for a retirement benefit. The minimum benefit is $2,000 ($1,000 if retired before 4/1/91); the maximum benefit is $10,000.
Click on the highlighted words above to learn more about the death benefits available from the Plan.
This page includes only a general description of the above rules. Please consult the Summary Plan Description for more details, contact United Benefits Group with any questions, and be aware that the terms of the official Plan document will prevail in the event of any inconsistencies or misunderstandings.
