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Lump Sum Payments

Assets accumulated under the ORP may be payable as either a full or partial lump sum. The plan’s rules governing lump sum payments are:

1. For participants age 55 and older, lump sums are available at any time after termination of employment.
   
   
2. For participants younger than age 55, lump sums are not payable until the attainment of age 55, except that:
   
   
   • For funds accrued as of June 30, 2004 ("old money"), and their related investment earnings accumulated-to-date, lump sum distributions are payable to participants younger than age 55 if the distribution is directly rolled over to either a subsequent employer’s retirement plan or a Rollover IRA.
     
     
3. Small Balance Distribution: Participants whose total account balance under the plan is less than $5,000 may take the full amount as a lump sum any time after terminating employment.

Survivor benefits payable under Systematic Withdrawals are typically the remaining account balance. Consequently, this approach is often used in conjunction with participants’ estate tax planning.

Fixed Period Payments

Fixed Period Payments, sometimes called “Installment Annuities”, are paid by insurance companies. The company agrees, by contract with the participant, to make certain payments to the participant for a fixed period of time. The Fixed Periods are usually from two to thirty years. However, the period cannot exceed the participant’s life expectancy.

The stability and predictability of Fixed Period payments make them applicable when participants require a specific income for a set period of time. Participants often use this payment method for a portion of their account balance, usually during periods of early retirement.

Survivor benefits under a Fixed Period arrangement can vary by Provider. However, they are generally an actuarially-determined value (discounted) of the un-paid installments; not simply the remaining balance.

Interest Only Payments

Participants may elect to draw only the investment income and/or interest from their accounts. The Providers’ features for this payment method can vary widely, depending on the type of investment supporting the payments.

Interest Only payments can suit many needs, and are often used in conjunction with estate tax planning efforts.

Survivor benefits under Interest Only arrangements can vary by Provider. The death benefit is typically an actuarially-determined (discounted) value of the future payments, not simply the un-paid account balance.