Distribution Options

If you terminate employment and then return to work at MIT after July 1, 2012, the benefits you earn from the date you are rehired and the benefits you earned before your first termination date with MIT will be paid out under any of the Old Plan benefit options that you elect. However, the benefits you earned under the Old Plan before your first termination date are the only benefits that will automatically receive cost of living increases. The benefits you earned after your rehire date will not receive the automatic cost of living increases, unless you elect the cost of living increase option for those benefits.

If the cash balance account of your Pension Plan benefit is $10,000 or less or you have been an MIT employee for 10 years or fewer, you may choose either a single lump-sum payment or a lifetime pension.

If the cash balance account of your Pension Plan benefit is more than $10,000 and you have been an MIT employee for longer than 10 years, you will receive a monthly lifetime pension

If the cash balance account of your Pension Plan benefit is $75,000 or less or you have been an MIT employee for 15 years or fewer, you may choose either a single lump-sum payment or a monthly lifetime pension.

If the cash balance account of your Pension Plan benefit is more than $75,000 and you have been an MIT employee for longer than 15 years, you will receive a monthly lifetime pension.

If you are eligible for a lump sum option, you receive the entire current value of your benefit in a single payment. MIT uses IRS required assumptions with respect to current interest rates and average life expectancy to calculate the present value of your benefit. If you are married when you receive your lump-sum payment, your spouse must consent in writing to your selection of this option.

• You will receive the largest possible monthly payments under this option because no payments will be made to your survivors.
• If you are married when your payments begin, your spouse must consent in writing to your selection of this option.

• You will receive monthly payments as long as you live. Upon your death, 50%, 75% or 100% of the payments you were receiving will continue to your beneficiary, as long as he/she is living.
• If you are married when your payments begin, you must designate your spouse as your beneficiary unless your spouse consents in writing to the selection of the option.
• The amount of the payments you receive will be reduced to reflect the value of benefits that may be payable to your survivor.
• After your death, the survivor you designated (also referred to as your contingent annuitant) will receive monthly lifetime payments until their death.

• You will receive monthly payments for as long as you live. If you die before receiving 120 monthly payments (10 years) or 180 monthly payments (15 years), the plan will pay your beneficiary or your estate if your beneficiary has predeceased you.

  Example: A retiree elects the "Life Annuity Option with a 15-year Certain Period" and dies after receiving his benefit for five years. His beneficiary would then receive the participant's monthly benefit for the 10 years remaining in the 15- year certain period. However, if the beneficiary dies after receiving this benefit for only five years, the remaining five years of payments would then go to the secondary beneficiaries on file, or the retiree's estate if there are no secondary beneficiaries.

• In general, tax regulations require that the 10 or 15 year certain period that you elect must not exceed your life expectancy at the time you make the election.
• If you are married when benefit payments begin, your spouse must consent in writing to your election of this option. This option will reduce the amount of your monthly lifetime annuity payment.