MMC Benefits Handbook
Period Certain
The period certain form of payment is a single life annuity combined with a guaranteed payment period. This form of payment provides you with equal monthly payments for your life and guarantees that benefits will be paid for a minimum of 5, 10, 15 or 20 years as you elect (but no longer than your life expectancy), in the event that you die before all guaranteed payments are made.
If you die before all guaranteed payments are made, your period certain designated survivor will receive the remaining payments. If you survive the period of guaranteed payments, your monthly benefit will be continued for as long as you live, but no payments will be made to your period certain designated survivor after you die.
If both you and your designated survivor die before all guaranteed payments are made, the commuted value of the balance of the guaranteed payments will be made in one lump sum to the executor or administrator as the case may be, of the last to die.
You can elect to change your designated survivor at any time prior to your death. However, if you elect to change your designated survivor after your Benefit Commencement Date and you had a Spouse on your Benefit Commencement Date, you must obtain his/her written, notarized consent to your election.
If you elect this payment form, a reduction factor based on your age will be applied to your monthly benefit to take into account the guaranteed period. The longer the guarantee period you elect, the greater the reduction to your monthly benefit.
If you have a Spouse and wish to elect the period certain form of payment, you must obtain your Spouse's written, notarized consent to your election. If you have a Domestic Partner and you wish to elect a Period Certain with a designated survivor other than your Domestic Partner, you are not required to obtain your Domestic Partner's consent.
Legal limits based on your age when payments begin may restrict the length of the guaranteed payment period you elect. You will be notified if these limits will affect your choice of guaranteed payment period.
The following table shows the period certain annuity factors (i.e., the reduction factor applied to your single life annuity payment to account for the guarantee period that will apply if you select a period certain form of payment):
Participant Age
5 Year
10 Year
15 Year
20 Year
55
99.5%
98.5%
96.3%
93.5%
56
99.4%
98.0%
95.9%
92.4%
57
99.4%
97.7%
95.4%
91.3%
58
99.3%
97.5%
94.9%
90.2%
59
99.2%
97.2%
94.4%
89.1%
60
99.1%
96.8%
93.7%
88.0%
61
99.0%
96.4%
93.0%
86.9%
62
98.9%
96.0%
92.2%
85.8%
63
98.7%
95.4%
91.3%
84.7%
64
98.6%
94.9%
90.3%
83.6%
65
98.5%
94.2%
89.2%
82.5%
66
98.1%
93.5%
88.0%
80.8%
67
97.8%
92.7%
86.7%
79.1%
68
97.5%
91.8%
85.3%
77.4%
69
97.2%
90.8%
83.8%
75.7%
70
97.0%
89.8%
82.2%
74.0%
71
96.8%
88.6%
80.6%
72.3%
72
96.6%
87.4%
78.8%
70.6%
73
96.4%
86.0%
76.9%
68.9%
74
96.2%
84.5%
75.0%
67.2%
75
96.0%
83.5%
74.0%
65.5%
Period Certain Example
Sally retires with a vested Accrued Benefit of $1,000 per month and elects to commence her monthly benefit payments at age 65. Sally has a Spouse, or Domestic Partner, Jordan. Sally selects a 10 year Period Certain form of payment and names Jordan as her designated survivor. In this case, Sally's monthly benefit payment will be reduced to $942 ($1,000 × 94.2%) and paid for the rest of her life. If Sally dies before she has received monthly payments for at least 10 years, Jordan, will receive the monthly benefit payment of $942 until the 10 year period has been met.