Sec. 105. Benefits in the form of an annuity
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A SAVE UP Account shall pay benefits in the form of an annuity in accordance with subsection (b). The amount of such benefits shall be based on the amounts credited to the individual’s SAVE UP Account and the form of distribution the individual elects. Notwithstanding the preceding sentence, the amount of an annuity may be adjusted to reflect the experience of the Fund as necessary to protect the financial integrity of the Fund, except that annuity payments for those in pay status shall not be reduced more than 5 percent per year unless the Fund is faced with a significant financial hardship and the SAVE UP Board of Governors has approved the reduction.
SAVE UP Accounts shall pay benefits in accordance with one of the following: In the case of a participant who does not die before the annuity starting date, the benefit payable to such participant shall be provided in the form of a qualified joint and survivor annuity (as defined in section 205(d)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1055(d)(1) )). In the case of a participant who dies before the annuity starting date and who has a surviving spouse, a qualified preretirement survivor annuity (as defined in section 205(d)(2) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1055(d)(2) )) shall be provided to the surviving spouse of such participant.
In lieu of a qualified joint and survivor annuity form of benefit or the qualified preretirement survivor annuity form of benefit (or both), a participant may elect to receive a distribution described in subsection (f)(3) if one of the following conditions are met: The spouse of the participant consents in writing to the election. Such election designates a beneficiary (or form of benefits) which may not be changed without spousal consent (or the consent of the spouse expressly permits designations by the participant without any requirement of further consent by the spouse).
The spouse’s consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public. It is established to the satisfaction of a Fund representative that the consent required under clause
(i)cannot be obtained because there is no spouse, because the spouse cannot be located, or because of such other circumstances as the SAVE UP Board of Governors may by regulations prescribe. The consent of a spouse (or establishment that the consent of a spouse cannot be obtained) under this subparagraph shall be effective only with respect to such spouse. A participant may elect the time to start receiving benefit payments under this section, except that a participant— may not elect to receive benefit payments before reaching the age of 62; and must begin receiving benefit payments before the age of 70. Each Fund shall provide to each participant, within a reasonable period of time before the annuity starting date, a written explanation substantially similar to that required by section 205(c)(3) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1055(c)(3) ). Benefits under a SAVE UP Account shall be subject to section 206(d) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1056(d) ). The SAVE UP Board of Trustees shall establish and maintain mechanisms for adequately securing the payment of annuity benefits under this section. The SAVE UP Board of Trustees shall include a written description of such mechanisms in the investment and lifetime income policy statements required to be disclosed to participants. The mechanisms described in paragraph
(1)shall ensure that— each participant receives a stream of income for life; each participant and beneficiary has an opportunity to be protected against longevity risk; and volatility in benefit levels is minimized for participants and beneficiaries in pay status and those approaching pay status. Notwithstanding any other provision of law, a SAVE UP Account may self-annuitize if the SAVE UP Accounts Fund meets such requirements as the SAVE UP Board of Governors establishes as necessary to protect participants and beneficiaries. The SAVE UP Board of Governors shall, periodically and in accordance with established procedures, update the funding requirements promulgated under this paragraph in response to changing economic and business conditions to the extent necessary to carry out the purposes of this Act.
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