Yes. Approximately 90 days prior to his or her 65th birthday each member can choose the “Partial Lump Sum Payment Option.” This option provides the retiree a lower monthly benefit in return for a lump sum of money when his or her pension begins. If a member elects this option, he or she must specify the percentage by which he or she wishes the pension reduced—the maximum percentage reduction is 10%. The amount the pension is reduced will then be translated into an actuarial equivalent number of dollars as determined by the Pension Plan’s actuaries.
For example: If a member at age 65 is entitled to a pension benefit of $500.00 monthly, he or she may have the pension reduced to $450.00 under the lump sum payment option. In return for the reduction in the lifetime monthly pension payment, on reaching 65 he or she will receive a check from the Pension Plan for $5,000.00, which is the actuarial equivalent of the reduction of the pension benefit by $50.00 per month. The retiree will then receive regular monthly checks of $450.00 as long as he or she lives.