When Is My Benefit Payable To My Surviving Spouse Or Beneficiaries?

The balance of your Individual Account will be paid to your surviving spouse or Beneficiaries upon your death. You may name Beneficiaries at any time by submitting the Designation of Beneficiary Form.

When Is My Benefit Payable To A Former Spouse?

Beginning on January 1, 1985, Federal law provides that in the event of divorce, your former spouse may have a right to receive some portion of your benefit directly from NEAP. In connection with a divorce or property settlement agreement, a court may direct that a portion of your benefit be paid to your former spouse. NEAP will recognize such a court order and make direct payments to your former spouse only if there is a Qualified Domestic Relations Order (QDRO) as required by federal law.

Joint and Survivor Annuity Benefit

The Joint and Survivor Annuity Benefit provides you with a reduced monthly benefit for your lifetime and at your death provides your spouse with a further reduced monthly benefit for your spouse’s lifetime. This benefit will be funded by the purchase of an appropriate insurance contract, unless the Trustees decide otherwise.

If you are married when you apply for a benefit, you will receive your balance as the Joint and Survivor Option unless you elect with your spouse’s consent to receive your balance as the Lump-Sum Option.

Eligibility Requirements for a Joint and Survivor Annuity Benefit

If you apply for a Retirement Benefit, you must meet the following requirements:

Determining Which Option Applies to Your Benefit

Your Retirement Benefit is based on the balance of your Individual Account and your marital status when you apply.

Individual Account Balance Is $5,000 or Less

If you are eligible for a Retirement Benefit and the balance in your Individual Account is $5,000 or less, your marital status is not considered and you will receive your benefit as a Lump-Sum Distribution.

Individual Account Balance Is Between $5,000 and $10,000

If you are eligible for a Retirement Benefit and the balance in your Individual Account is between $5,000 and $10,000, your marital status is considered and you will receive your benefit as either A, B or C below:

OR

OR

If My Individual Account Balance Is Between $5,000 and $10,000, Can I Choose the Lump-Sum Option Without My Spouse’s Consent?

No. If you are married and choose the Lump-Sum Option without your spouse’s consent, your benefit will not be paid as a Lump-Sum Distribution. Your benefit will be paid as the Joint and Survivor Option. ERISA rules only permit NEAP to pay your benefit as a Joint and Survivor Annuity Benefit if you do not have your spouse’s consent. Therefore, you must have your spouse’s consent before you can receive your benefit as a Lump-Sum Distribution.

Individual Account Balance Is More Than $10,000

If you are eligible for a Retirement Benefit and the balance in your Individual Account is more than $10,000, your marital status is considered and you will receive your benefit as either A, B, C or D below:

OR

OR

OR

OR

If My Individual Account Balance Is More Than $10,000, Can I Choose the Lump-Sum Option and/or Fixed Monthly Option Without My Spouse’s Consent?

No. If you are married and choose the Lump-Sum Option or the Fixed Monthly Option without your spouse’s consent, your benefit will not be paid as a Lump-Sum Distribution or as a Fixed Monthly Benefit. Your benefit will be paid as the Joint and Survivor Option. ERISA rules only permit NEAP to pay your benefit as a Joint and Survivor Annuity Benefit if you do not have your spouse’s consent. Therefore, you must have your spouse’s consent before you can receive your benefit as a Lump-Sum Distribution or as a Fixed Monthly Benefit.