Option 4 - Part Lump Sum, Part Joint Pension
This option is similar to the option three, but goes one step further in proving the member a joint pension with the spouse. The joint pension rate applicable is 11%. Therefore the calculation on the same account balance of $40000 will be as follows:
Account balance = $ 40000
Less lump sum Amt = $12000 (his choice)
Pensionable amount = $28000
• 11% of $28000 = $ 3080 per annum
= $256.67 per month
Upon the death of the member, the spouse will continue to get the sum of $3080 per annum until his/her death.