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Formerly, if a member had elected a Contingent Annuitant and planned on retirement at Normal Retirement Age but died before he retired, the Contingent Annuitant Option was void, and the only benefit that accrued was to the beneficiary, and this consisted of a return of the member's contributions plus interest for the interest-bearing period.

The liberalized option provides that if a member has elected a Contingent Annuitant before he, the member, reached age 50 if he is a flight crewman or a woman, or before he reached age 55 if he is in ground service work--the Contingent Annuitant receives annuity payments for the balance of his/her life regardless of the date of death of the member if death occurs after age 50 or 55 according to status above.

The effect of this liberalized option is this. If death of the member occurs in the 10-year period prior to Normal Retirement Age, it is considered as Early Optional Retirement so far as benefits are concerned. In other words, annuity payments will be made for the lifetime of the Contingent Annuitant equal to the percentage, elected by the member, of the retirement income the member would have received if he had retired on the first of the month following his death.

This must be understood: The Contingent Annuitant income payments will be lower than they would be had the member lived to Normal Retirement Date, for the same reasons as outlined in paragraph two concerning Early Optional Retirement.

Nevertheless, a loved survivor would be assured of an income which otherwise would not be available! The thing to weigh is whether it is better to assure some income after your death to someone else for his or her lifetime, or for a beneficiary to receive only what you have contributed to the Plan, plus whatever interest those contributions may have earned, less what you may have drawn. And, of course, you have to decide whether you want the most you can get for yourself as a member during your lifetime only, or whether you want to take less while you live and provide a continuing annuity for someone else after your death.

Normally, it would not be possible to take this option if you are within 10 years or less of normal retirement age. But we consider this benefit so important that we have obtained the consent of the underwriters to open the chance for this option, for a limited time, to those who are already within the 10-year period. The election must be made by no later than March 31, 1957. Don't be deceived by the fact that March 31 is two or three months away. Make up your mind now and act now.

One other thing: - proof of date of birth of the Contingent Annuitant will be needed, just as it is needed in the case of the member. Be sure to get started on a birth certificate or other such proof for your Contingent Annuitant as well as yourself right away.

If, after you have studied this thing over and talked to Industrial Relations about it, you decide that you do not want it, we will want a signed statement from you to that effect--so that we won't have to explain why your widow or other possible survivor doesn't get it.

For full information contact:
PERSONNEL LIAISON OFFICE, BLDG. 134, COB, or GATEHOUSE ANNEX #1, PAF EXEC. BLDG. - MR. R. L. JONES' OFFICE


A. J. L. Hume
Industrial Relations Manager

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