The Verizon Retirement Plan for Mid-Atlantic Associates is a defined benefit pension plan designed to provide you with a financial resource at your retirement.
You are eligible to participate if you are a union-represented associate hired before October 28, 2012. As an eligible associate, your participation will begin on:
- the day you reach age 21, or
- the date you complete one year of employment in which you are credited with 1,000 hours of service as of the first anniversary of your employment.
It is easy to obtain a form for your Pension Plan Preretirement Beneficiary Authorization. Simply contact the Verizon Benefits Center. You can also go online to the BenefitsConnection website.
It is important to complete this form if you wish for your designated beneficiary to receive a survivor benefit should you die after earning the right to your vested benefit.
Your pension amount is a total of the basic monthly pension benefit and your supplemental monthly retirement pension benefit.
Eligibility to retire and then to start to receive your service pension depends on age and net-credited service. This happens at termination of your employment. If you retire with 30 or more years of net- credited service, your pension can be paid in full without reduction for early payment. This benefit is provided regardless of your age at employment termination.
Standard payment options for your pension at retirement are a single life annuity and a joint and survivor annuity. A lump sum “cash-out” distribution is also available. This option is for eligible associates who terminate employment with the right to receive a pension during the current negotiated contract.
A lump sum distribution provides a single payment that is equal in value to the monthly pension benefit you are otherwise entitled to receive over your lifespan.
If you are not married at the time payment begins, the standard form of payment is a single life annuity. If you choose this form of payment, the benefit will be paid as regular monthly income. This continues for your lifetime. Payments are not continued to a beneficiary. To receive the monthly payment for your beneficiary, you must elect an optional method.
You have four joint and survivor annuity payment options from which to choose:
- a 50 percent survivor annuity
- a 60 percent survivor annuity,
- a 70 percent survivor annuity
- a 75 percent survivor annuity
Every joint and survivor payment option pays you a reduced monthly pension benefit. This continues for as long as you live. In the event that you die before your beneficiary, each option pays a different percentage of your monthly pension benefit.
For example: a 50 percent annuity for your survivor will continue half of your monthly pension benefit to your beneficiary if you die (the 70 percent annuity option continues 70 percent of your monthly benefit, etc.).
You can choose any living individual as your beneficiary under any of the joint and survivor annuity options (for service, disability or deferred vested pensions). If you are married, however, your spouse must be your beneficiary.
To change this, you must obtain written consent from your spouse. This written consent must be notarized. Your spouse’s written consent with respect to a change in beneficiary can no longer be revoked upon the annuity starting date.
You may also choose to receive a lump sum distribution on a starting date you select in advance. This is done by following procedures set up by the pension plan administrator. This can happen either the day following termination of employment, or on the first day of any following calendar month.
If you’re married, you’ll need your spouse’s signed and notarized consent. This consent will release your lump sum distribution (except when the cash-out value is $3,500 or less).
A lump sum distribution provides a single payment that is equivalent in value to the monthly pension benefit you otherwise would be entitled to receive over your lifetime.
This equivalent value is based on the monthly pension benefit payable beginning on your starting date for your military service pension, or your normal retirement age for a deferred vested pension.
A lump sum factor is used to change your single life annuity benefit into a lump sum. This amount takes into account current interest rates. It also considers standard mortality tables.
For more information regarding your pension, please see the Summary Plan Description for the Mid-Atlantic Plan.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Neither Hapanowicz & Associates, Hapanowicz & Associates Wealth Management nor LPL Financial are affiliated nor endorsed by Verizon Communications Inc., Verizon Wireless, or any other subsidiary of Verizon. Neither Hapanowicz & Associates, Hapanowicz & Associates Wealth Management nor LPL Financial are affiliated with any of the other entities referenced on this website. This should not be construed as an endorsement of a particular firm by any CWA-Local including 13000/13500 as well as any IBEW-Local.