Before you begin to receive your monthly pension benefit from PBGC, you have an important decision to make: How do you wish to receive your monthly benefit?
This question is complex and could be one of the most important financial decisions you will ever make. Your decision affects the amount of your monthly benefit and how much your beneficiary will receive after your death. The best option for you depends on your age, health, and other financial resources, as well as the age, health, and financial needs of anyone for whom you wish to provide a benefit. If you are married, you should discuss this choice with your spouse. You may also want to discuss this choice with other family members or friends and, possibly, a financial advisor. The following information is designed to help you make an informed choice.
You may choose your plan’s “automatic” benefit form or one of the PBGC optional benefit forms, described below. Your plan’s “automatic” benefit form is the benefit form your plan would pay you if you do not make an election. Your automatic benefit form may be the same as one of the PBGC optional benefit forms.
- If you are unmarried, you may choose your plan’s automatic benefit form for unmarried participants or any of the PBGC optional benefit forms described below. This automatic benefit form in most plans is a straightlife annuity or a certain-and-continuous annuity. Visit Benefit options for details.
- If you are married, your automatic benefit form is a joint-and-survivor annuity with your spouse as beneficiary. You may choose that benefit form, or, with your spouse’s written consent, you may choose your plan’s automatic benefit form for unmarried participants or any of the PBGC optional benefit forms, with your spouse or another person as beneficiary.
Please note that your spouse has a legal right to the survivor benefit under your pension plan’s automatic benefit form for married participants. You can elect a different benefit form or a beneficiary other than your spouse only if your spouse consents by signing Section 3 of the Application and having the signature notarized.