Option 5 - Part Lump Sum, Part Life, Part Joint Pension
This is one option that provides the member with the opportunity to enjoy all the options mentioned earlier. He will be able to receive a lump sum amount and remaining balance as Life and Joint Pension.
Account balance = $ 40000
Less lump sum Amt = $10000 (his choice)
Pensionable amount = $30000
The calculation is based on the funds. His life pension rate for the year 2008 will be 15% and joint pension rate will be 11%, therefore the calculation for his pension is as follows.
The member assigns remaining balance of $30000 as follows.
1. $ 15000 as Life pension
• 15% of $15000 = $ 2250 per annum
= $ 187.50 per month
2. $15000 as Joint pension
• 11% of $15000 = $ 1650 per annum
= $137.50 per month
The member during his life time will be receiving two pensions upon his death the life pension will cease but the joint pension will be transferred to the spouse, who then will be receiving the joint pension amount during her life time.