Retirement Payment Options [GuideStone] - (pdf file)

“Well done...”
M AT THE W 25:21
Do well.
At GuideStone Financial Resource
Resources, we strive to do well. For more than eight decades we have been enhancing the financial
security of our Southern Baptist ministers, church and institutional employees and seminary students. We have built our
reputation on our quality products and our proven track record of customer service.
Do right.
We share common values with you. We be
believe that doing what’s right matters. Our retirement products and investment
funds seek to be competitive while remaining faithful to Christian values and goals. We are here for your benefit. No profit
motive. No competing interests. Our bottom line is your bottom line — retirement security.
777'5)$%34/.%/2's'5)$%
2
Shaping the years ahead
Understand and choose your retirement payment option
The following pages will help you evaluate the retirement payment options available through GuideStone.
(Note that the letters used to identify the benefit options in the table of contents below correlate to the
Benefit Application which you will find in the back pocket of this folder.)
If you have questions about the application process or any other concerns, please call GuideStone at
1-888-98-GUIDE (1-888-984-8433) for personal assistance. We are glad to help you at every step along
the way.
5
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Before you decide
6
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Benefit comparison chart
9
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Annuity Benefits
10
11
12
12
13
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±
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Joint Life Annuity Benefit /PTION!
Joint Life Annuity Benefit with a Guarantee Period /PTION"
Single Life Annuity Benefit /PTION#
Single Life Annuity Benefit with a Guarantee Period /PTION$
Fixed Period Benefit /PTION%
16
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Installment Benefit /PTION&
17
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Single Sum Benefit /PTION'
18
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Combination of Benefits /PTION!'
19
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Common questions
20
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Benefit selection checklist
3
GuideStone is here for you
We will serve you just as well in retirement
as we did during your working career.
recognized Customer Relations department
You may have spent half a lifetime saving and
planning for retirement. Now that discipline and
has specialists available Monday through Friday,
7 a.m. to 6 p.m. CST. Access their expertise by
diligence are about to pay off. For many people,
retirement means new opportunities and ventures
calling 1-888-98-GUIDE (1-888-984-8433).
— maybe you’ll continue in your current position or U !CCESSIBILITY — GuideStone provides
work part-time far beyond the “traditional” retireaccess to your account information through
several avenues including quarterly statements,
ment age. Perhaps you’ll turn a hobby into a busie-mail, the Web site, www.GuideStone.org
ness, or try a new career path.
or our toll-free number, 1-888-98-GUIDE
(1-888-984-8433).
There are many choices when it comes to managing
the money in your retirement account. The same U Expertise — At GuideStone you benefit from
the expertise of financial professionals holding
thought and care that went into building your
a variety of prestigious certifications including:
savings can now be directed toward putting your
Chartered Financial Analyst® (CFA®) chartersavings to work for you. GuideStone is ready to help.
holder, Certified Financial Planner® (CFP®),
Certified Public Accountant (CPA), Certified
As a participant in a GuideStone Financial Resources
Employee Benefit Specialist (CEBS), Chartered
retirement savings plan, you have a well-established
Retirement Planning Counselor (CRPC) and
organization standing behind you and your retirenumerous securities licenses.
ment money. You have relied on us for many years
to help you save and invest for your future. We will U Motivation — Our products and services are
designed to be competitive while adhering to
serve you just as well in retirement as we did during
Christian values. Unlike many organizations
your working career.
corporate profit is not our motive. Our annuities
#ONSIDERTHEFOLLOWING'UIDE3TONEFEATURES
charge no commissions and offer competitive
U Heritage — You are with an organization that
funding rates which result in higher benefit payhas been increasing financial security for its parments to you.
ticipants and retirees since 1918.
U #ONSOLIDATION — You can combine other
U Individual attention — GuideStone repreretirement accounts with GuideStone. This
sentatives provide informative on-site group
can increase your benefit payment amount
meetings as well as the opportunity for oneand simplify your retirement through one
on-one appointments. GuideStone employees
trusted provider.
are willing to go the extra mile to take care of
our participants. GuideStone’s nationally-
Housing allowance for ministers
Eligible ministers can designate their GuideStone benefit as a tax-free minister’s housing allowance,
within legal limits.
4
Before you decide
Your benefit selection is a personal decision
involving considerations about your income requirements,
attitudes about risk, need for control over your finances
and other factors.
7HENCHOOSINGYOURPAYMENTOPTIONCONSIDERTHEFOLLOWING
s Your age and, if married, your spouse’s age.
s Spouse’s retirement income, if any.
s Other assets (savings and investments).
s Health care expenses for you and your family.
s Living expenses (food, clothing, housing, auto, insurance, etc.).
s Amount of debt and the time it will take to pay it off.
s Social Security benefits.
s Prospects of earning additional income. (Remember additional earnings could lower your
Social Security benefits. Check with your local Social
Security Administration office for additional information.)
s Retirement goals (travel, hobbies, etc.).
s Housing.
s Family obligations (dependent family member).
s Health and ability to manage retirement.
s Inflation.
s Estate plans.
s Receiving an inheritance.
Questions?
If you need additional assistance,
st
please call '5)$%
(1-888-984-8433). The next few pages discuss payment options avail(1-888-984-8433)
able to you. As you review these options, feel free to call us. We are
trained and ready to assist you in making your decision.
5
Benefit Comparison Chart
!..5)49"%.%&)4
The
Electronic direct deposit:
What are the benefits?
offers you…
34!"),)49
s You can have a monthly income payment option that is:
– set for life (fixed annuity benefit), or
– adjusted annually (variable annuity benefit), or
This no-cost service offered by GuideStone
gives you:
s Security
Your benefit is automatically deposited so
you do not have to worry about it being lost
or stolen.
– established for a period of your choosing (fixed period benefit).
'5!2!.4%%$).#/-%
s You will not outlive your money if you choose any of the life annuity benefits.
,)&%4)-%).#/-%&/2!30/53%
s You can set up a benefit that will pay throughout your, and your spouse’s, lives.
s #ONVENIENCE
No need to make a trip to the bank.
&2%%$/-&2/-).6%34-%.42%30/.3)"),)4)%3
s Simplicity
It is easy to start, stop or change.
#(/)#%3
s &LEXIBILITY
Your deposit is made into any account
you choose.
s Reliability
You can be sure your funds are deposited
into your account on time, accurately and
confidentially.
s Make your benefit choice and leave the rest to GuideStone.
s You can set up your annuity benefit as:
– Single Life.
– Single Life with a Guarantee Period.
– Joint Life.
– Joint Life with a Guarantee Period.
– Fixed Period benefit.
s You can choose between:
– &IXEDANNUITYBENElT Offers fixed monthly payment amount.
– 6ARIABLEANNUITYBENElT Offers monthly benefit amount that adjusts annually (up or down).
+%%0).-).$4(!4x
When you choose an annuity benefit, all of your decisions are made up front. You will not outlive
your money with a life annuity benefit.
For more details, go to page 9.
6
The
).34!,,-%.4"%.%&)4
offers you…
&,%8)"),)49
s You can receive your benefit in one of three ways:
– Equal monthly payments.
Combine multiple
payment options.
– A percentage of the account.
– Over a specific period of time.
s You can choose to take an annuity benefit in the future.
#/.42/,/&).#/-%
s You can start, stop or change payments at any time.
s You can receive a portion of your account at any time.
You can have the flexibility of managing
a portion of your account as well as the
security of a monthly benefit payment
for life. Simply decide what options you
want and complete the appropriate section of the benefit application.
#/.42/,/&).6%34-%.43
s You can continue to choose your investment funds.
%34!4%6!,5%
s You can pass any remaining account balance through your estate.
+%%0).-).$4(!4x
Depending on your withdrawal and the return on your investments, you could outlive your money. When
you choose the installment option, you are subject to investment risks and there are no guarantees
of returns.
For more details, go to page 15.
Questions?
Call a GuideStone Customer Service specialist at '5)$%
or visit our Web site at www.GuideStone.org.
7
Annuity terms TOREMEMBER
s !NNUITY
A benefit payment for life received in
exchange for a lump sum.
s #ONTINGENTANNUITANT
May be anyone with whom you choose to
share a joint life annuity benefit (usually your
spouse). In most cases, if you are married
you must obtain your spouse’s notarized
consent to name another person as your
contingent annuitant.
s Guarantee period
Ensures that your designated beneficiary
receives income if you and your contingent
annuitant die before the guarantee period
ends. The benefit could be monthly payments equal to the contingent annuitant
payment or a lump sum payment. You may
choose any guarantee period such as 10, 15
or 20 years.
s "ENEFITPERCENTAGE
You determine what percentage of your benefit your contingent annuitant may receive at
your death. You can select any percentage
up to 100%, such as 50%, 75% or 100%.
8
Annuities
The life annuity benefit, sometimes referred to as an immediate annuity, provides a regular source of income for life.
It is an arrangement you make with GuideStone to manage
the investment of your retirement money and distribute the
benefit payments to you, your contingent annuitant or your
beneficiary. One unique aspect of GuideStone’s life annuities is that our funding rates do not include commissions or
sales charges, which means more income for you.
When you establish an annuity benefit, you make all the
decisions up front. GuideStone takes over from there. You
may elect to take lifetime annuity benefits as a fixed dollar
annuity, a variable annuity, or a combination of the two.
Once established, an annuity benefit cannot be changed.
Two types of life annuity benefits are available:
s A fixed dollar annuity benefit provides a benefit that is a
specific, set dollar amount regardless of the performance
of the underlying investments.
s A variable annuity benefit provides a benefit dollar
amount that varies from year to year. On January 1
each year, the benefit amount may
increase or decrease as a result of
the underlying investments.
How are lifetime annuity benefits calculated?
Questions?
Call a GuideStone Customer Service specialist at '5)$%
or visit our Web site at www.GuideStone.org.
The benefit payment amount is determined by variables,
including the amount of the account balance used to
establish the benefit, the funding rate at the time your
benefit is established, your age, the payment option you
selected (single life or a joint life annuity), and any guarantee
period chosen. If you select a joint life annuity, the amount
will also be based on the age of your contingent annuitant
and the percentage of your benefit which is payable to the
contingent annuitant.
9
Joint Life Annuity Benefit
Option !
What does this payment option provide?
The Joint Life Annuity Benefit will provide you a
monthly benefit payable for life. In the event of your
death, the survivor feature goes into effect. The
contingent annuitant you designate, normally your
spouse, will receive a monthly benefit payable for
his or her life. The amount of this survivor benefit is
determined by the percentage of your benefit you
choose when completing the Retirement Benefit
Application. You may choose any percentage up to
100% of your benefit. Under this option, all benefits
cease once you and your contingent annuitant pass
away. You can establish the Joint Life Annuity Benefit
with all or a portion of your account balance. Once
you have decided, the money is transferred from your
account to establish your Joint Life Annuity Benefit.
&OREXAMPLE
Bill, age 65, is retiring with an account balance of
$100,000 and wants the assurance of a monthly
income for life for himself and his wife, Mary, who
is 63. Bill names Mary as his contingent annuitant
on the application. Next he must determine the
percentage of his benefit that is to continue as a survivor benefit for Mary. Let’s look at two options:
UÊ *OINT ,IFE !NNUITY "ENEFIT — Based
on his account balance and actuarial factors, this
option will pay Bill a monthly benefit of $632 for
his lifetime. Upon his death, Mary will continue
to receive a lifetime benefit of $632 (100% of
Bill’s monthly benefit).
UÊ *OINT ,IFE !NNUITY "ENEFIT — Based
on his account balance and actuarial factors, this
option will pay Bill a greater monthly benefit of
$682 for his life. However, upon his death, Mary
will receive a lifetime benefit of $341 (50% of Bill’s
monthly benefit).
*Examples are based on current funding rates and other assumptions.
10
Joint Life Annuity Benefit with a
Guarantee Period
Option "
What does this payment option provide?
The Joint Life Annuity Benefit with a Guarantee
Period will provide you a monthly benefit payable
for life. In the event of your death, the survivor
feature goes into effect. Your contingent annuitant,
normally your spouse, will receive a monthly benefit
payable for life. The amount of this survivor benefit
is determined by the percentage of your benefit you
choose when completing the Retirement Benefit
Application. You may choose any percentage up to
100% of your benefit.
Under this option, you also choose a guarantee
period on the Retirement Benefit Application. If you
and your contingent annuitant both die before the
end of the guarantee period a benefit will be paid to
your beneficiary for the remainder of the guarantee
period. The amount of the monthly benefit for the
remainder of the guarantee period will be the same
as the contingent annuitant’s survivor benefit. You
may choose a guarantee period such as 10, 15 or 20
years, etc. However, the maximum guarantee period
GuideStone offers depends on life expectancy and
is determined under IRS regulations. The beneficiary has the option to receive the equivalent of the
remaining payments in a single sum payment or to
continue receiving the current monthly payments
for the remainder of the guarantee period.
If you live beyond the guarantee period, payments
will continue for the remainder of your life. In the
same way, if your contingent annuitant lives beyond
the guarantee period, payments will continue for the
remainder of their life at the percentage you decide
as described previously.
Annuities
&OREXAMPLE
Bill, age 65, is retiring with an account balance of
$100,000 and wants the assurance of a monthly
income for life for himself and his wife, Mary, who is
63. However, he also wants to make sure payments
continue for at least 15 years if he and Mary should
die early in retirement. Bill names Mary as his contingent annuitant on the application. Next he must
determine the percentage of his benefit which is to
continue as a survivor benefit for Mary. Let’s look at
two options:
UÊ *OINT ,IFE !NNUITY "ENEFIT WITH A
9EAR'UARANTEE — Based on his account
balance and actuarial factors, this option will
pay Bill a monthly benefit of $628 for his life.
Bill dies after receiving two years of payments.
Mary continues to receive a lifetime benefit of
$628 (100% of Bill’s monthly benefit). If Mary
dies three years later, Mary’s beneficiary would
receive a monthly payment of $628 for the ten
years remaining in the guarantee period or the
equivalent amount in a single sum payment.
UÊ *OINT ,IFE !NNUITY "ENEFIT WITH A
9EAR'UARANTEE — Based on his account
balance and actuarial factors, this option will pay
Bill a greater monthly benefit of $680 for his life.
However, upon his death after two years, Mary
will only receive a lifetime benefit of $340 (50%
of Bill’s monthly benefit). If Mary dies three years
later, Mary’s beneficiary would receive $340 for
the ten years remaining in the guarantee period
or the equivalent in a single sum payment.
*Examples are based on current funding rates and other assumptions.
Questions?
Call a GuideStone Customer Service specialist at '5)$%
or visit our Web site at www.GuideStone.org.
11
Single Life Annuity Benefit
Option #
What does this payment option provide?
The Single Life Annuity Benefit will provide you a
monthly benefit payable for life. In the event of your
death, benefit payments stop.
&OREXAMPLE
Beverly, age 65, is single and wants the assurance of
a monthly income for life. She has an account balance of $100,000 and selects a Single Life Annuity
Benefit. Based on her account balance and actuarial
factors, this option will pay Beverly a monthly benefit of $740 for her lifetime. Benefits will cease in the
event of death.
*Examples are based on current funding rates and other assumptions.
Single Life Annuity Benefit with a
Guarantee Period
Option D
What does this payment option provide?
The Single Life Annuity Benefit with a Guarantee
Period will provide you a monthly benefit payable for
life. Under this option, you also choose a guarantee
period on the Retirement Benefit Application. You
may choose a guarantee period such as 10, 15 or
20 years, etc. However, the maximum guarantee
period GuideStone offers depends on life expectancy and is determined under IRS regulations. If
you die before the guarantee period ends, a benefit
will be paid to your beneficiary for the remainder of
the guarantee period. The amount will be the same
as your benefit. The beneficiary has the option to
receive the equivalent of the remaining payments in
a single sum payment or to continue receiving the
current monthly payments for the remainder of the
guarantee period.
12
&OREXAMPLE
Beverly, age 65, is retiring with an account balance
of $100,000 and wants the assurance of a monthly
income for her lifetime. However, she also wants to
make sure payments continue for at least 15 years.
Beverly is single and designates her sister, Jane, as
beneficiary. Beverly selects a Single Life Annuity
Benefit with a 15-Year Guarantee. She receives
a monthly benefit of $689 for her life. If she dies
after receiving seven years of payments, her sister
Jane will receive $689 monthly for the eight years
remaining in the guarantee period or the equivalent
in a single sum payment.
*Examples are based on current funding rates and other assumptions.
Fixed Period Benefit
Option E
What does this payment option provide?
The Fixed Period Benefit provides you all or part
of your benefit for a set period of time. The total
amount required to fund the Fixed Period Benefit
for the time you choose is transferred from the
assets in your retirement account unlike the installment benefits or systematic withdrawal (see p. 15).
At the end of each month, you will receive a Fixed
Period Benefit check. At the end of the fixed period,
no other benefits will be paid. You can choose the
amount and/or payment period for a Fixed Period
Benefit payment.
Annuities
&OREXAMPLE
Beverly, age 65, is single and retiring. She decides
to receive a portion of her account as a Fixed Period
Benefit with equal monthly payments of $1,000 for
60 months. Beverly designates her sister Jane as the
beneficiary for this benefit. At the end of the 60month period, Beverly must complete new forms to
receive any additional retirement benefit payments
from the unused portion of her account.
If Beverly dies after receiving only five months of
this benefit, Jane, her beneficiary for this benefit,
will receive $1,000 monthly for the remaining 55
If you die before the fixed period ends, your benefi- months in the fixed period or the equivalent of the
ciary will receive payments in the same amount for remaining payments in a lump sum.
the remainder of the payment period. The beneficiary can also receive the equivalent of the remaining *Examples are based on current funding rates and other assumptions.
payments in a single sum payment. If you and your
beneficiary both die before the fixed period ends, the
beneficiary of whomever dies last will receive a single
(OWARE&IXED0ERIOD
sum payment equal to any remaining payments.
"ENEFITSCALCULATED
Your employer’s plan may impose limits on amounts
The benefit payment amount is determined
taken as a Fixed Period Benefit. If you have questions
by the longevity of payments, the frequency
about the possible restrictions, call a GuideStone
of payments, the account balance used to
Customer Service specialist at 1-888-98-GUIDE
establish the benefit and the funding rate
(1-888-984-8433).
when the benefit is established. Your
payment is fixed regardless of the actual
experience of the underlying investments.
Questions?
Call a GuideStone Customer Service specialist at '5)$%
or visit our Web site at www.GuideStone.org.
13
14
Installment
Benefit
An installment benefit provides you
monthly income along with flexibility and
continued control over your investments.
You continue directing your retirement
plan assets in your choice of investment
funds while taking installment payments.
In choosing this option, you will need to
be comfortable with the risk level of your
investments and understand the impact
that inflation can have over time. The
installment benefit can help satisfy your
regular income needs, but it also requires
your continued attention. If you withdraw
too much money each year, you may outlive your assets. However, if you withdraw
too little each year, you may make unnecessary sacrifices. The goal is to reach a
“sustainable withdrawal rate” that allows
you to live comfortably.
However, if you withdraw 6% of your
account (beginning at age 65) with the
same increases for inflation, you have only
a 56% chance that your account will last
for your lifetime. As a result, many experts
recommend that you utilize an appropriate
asset allocation, begin with no more than
a 4% withdrawal at age 65, and increase
the withdrawal amount by no more than
3% each year to provide some assurance
that you don’t run out of money.
It is important to note that the installment
benefit option is flexible. You may decide
to increase, decrease or stop your installment, or change all or a portion of your
account balance to an annuity at a later
date. In addition, an installment allows
you to receive a lump sum portion of your
account balance at any time.
Basically, a sustainable withdrawal rate
involves a combination of your age, your * For illustration purposes, the above examples
planning horizon or life expectancy, and assume an appropriately diversified investment
an appropriate asset allocation*. For portfolio that earns an average of 7% per year.
example, if you withdraw 4% of your
account beginning at age 65, and increase
the withdrawal amount by 3% each year
for inflation, you will have a 95% chance
that your account will last for your lifetime.
Questions?
Call a GuideStone Customer Service specialist at '5)$%
or visit our Web site at www.GuideStone.org.
15
Installment Benefit
Option &
What does this payment option provide?
0ERCENTAGE OF TOTAL ACCOUNT BALANCE
An Installment Benefit will provide you with monthly
This installment method will provide a monthly
income without committing all or a portion of your
benefit that varies each month. The benefit
account balance to establish an annuity payment.
amount is calculated by multiplying a monthly
Installment Benefits are payable for a specified
percentage by the total account value. The
period of time, until your funds are exhausted or
monthly percentage of your choosing is the
until you choose to cancel benefit payments. You
annual rate indicated on the application divided
can change or stop your Installment Benefit at any
by 12. If the annual percentage requested is
time by completing an Installment Benefit Change
greater than 14%, it will be subject to a 20% FedForm. To be eligible for an Installment Benefit, your
eral Income Tax withholding.
monthly benefit payment must be a minimum of $50
(see information below). Your employer’s plan may 0AID OUT OVER SPECIFIED PERIOD OF TIME
limit the amounts taken as an Installment Benefit.
Under this installment method, the benefit
The installment benefit offers three distinct payment
amount will vary each month. This benefit amount
options. In all three cases, your beneficiary or estate
is calculated by dividing the total account value by
is eligible to receive any balance remaining in your
the remaining number of payments. The entire
account after your death.
designated amount is paid out. If the payment
period is less than 10 years it will be subject to
%QUAL PAYMENTS OF A SPECIFIED AMOUNT
20% withholding.
This installment method will provide equal
monthly benefits of the amount requested. The &OREXAMPLE
benefit amount requested for this installment Beverly, age 65, is single and is retiring. She decides
method must be equal to or greater than $50 not to receive an annuity benefit at this time.
per month. If it appears the monthly payment Instead, she decides to receive $100,000 of her
amount will exhaust the account balance in less account value as an Installment Benefit. Below is a
than 10 years, it will be subject to a mandatory chart showing Beverly’s benefits under each of the
20% Federal Income Tax withholding.
installment methods:
%QUAL0AYMENTS
#ALCULATION
Method
Monthly
"ENElT
You choose the
monthly payout
$500 for
200 months
0ERCENTAGEOF4OTAL (Your balance x 4%) ÷ 12
!CCOUNT"ALANCE
Beverly ($100,000 x 4%) ÷ 12
PERYEAR
0AIDOUTOVERTIME
$100,000 ÷
180 months (15 years)
Chart does not assume growth of underlying account balance.
16
$333
(will vary each month)
$555
(will vary each month)
Single Sum Benefit
Option G
Single Sum
Benefit
What does this payment option provide?
A Single Sum Benefit provides all or part of your benefits to you in one payment. Your employer’s plan
may impose limits on a Single Sum Benefit. A Single
Sum Benefit payment is subject to a mandatory 20%
Federal Income Tax withholding. If only a portion of
the account balance is used, any remaining balance
will be paid to your designated beneficiary.
&OREXAMPLE
Beverly, age 65, is single and retiring. She wants
to receive a one-time payment of a portion of her
$100,000 account balance. She wants to defer payment of the remaining benefits until a later time.
Beverly selects a Single Sum Benefit of $25,000,
which represents 25% of her contribution accounts.
When Beverly wants to receive more of her account
value, she must complete new forms to receive
new benefits.
Questions?
Call a GuideStone Customer Service specialist at '5)$%
or visit our Web site at www.GuideStone.org.
17
Combination of Benefits
Options !'
Combination
of Benefits
benefits and chooses to set up half of his retirement
account as a Fixed 100% Joint Life Annuity and the
other half as a Variable 100% Joint Life Annuity. He
will receive $316 a month as a fixed benefit. He will
also receive $316 a month as a variable payment
until Jan. 1 of the next year. At that point the Variable Annuity portion of the benefit will increase
or decrease as a result of the performance of the
underlying investments. Upon his death, Mary will
&OR EXAMPLE 3INGLE ,IFE !NNUITY "ENEFIT continue to receive a fixed benefit of $316 a month
3INGLE3UM"ENEFIT)NSTALLMENT"ENEFIT
and the variable benefit as adjusted each year.
Beverly, age 65, is single and retiring. She has
$100,000 in her retirement account. She wants
to receive a monthly income for life and wants to
supplement this lifetime benefit by drawing a portion of her account each month. Beverly selects a
combination of benefits and chooses to set up a
Single Life Annuity, a Single Sum Benefit as well
as an Installment Benefit. She requests a Single
Sum Benefit of $3,000 to use for home repairs. The
Annuity Benefit will pay her $370 each month for
the rest of her life while the Installment Benefit will
supply her with an additional $157 each month. In
the event of her death, the annuity payments will
cease but the remaining account balance will be paid
to her beneficiary.
What does this provide?
You can combine benefit payment options to take
advantage of multiple benefits such as a Fixed or
Variable Lifetime Annuity Benefit, a Fixed Period
Benefit, an Installment Benefit and/or a Single Sum
Benefit. This approach could be used to customize
a plan that takes advantage of several of the payment
options mentioned earlier.
&OREXAMPLE&IXED*OINT,IFE!NNUITY"ENEFIT
6ARIABLE*OINT,IFE!NNUITY"ENEFIT
Bill, age 65, is married, retiring and has $100,000 in
his retirement account. He wants to receive a fixed
monthly income for life for himself and his wife to
cover his fixed expenses. He also wants to receive an
additional monthly benefit that has the opportunity
to increase over time. Bill selects a combination of
For assistance in deciding what combination of benefits could be used in your situation, call to
speak to a specialist at '5)$% (1-888-984-8433).
18
Answers
to commonly asked questions about
retirement benefits.
(
OW EARLY CAN ) BEGIN RECEIVING MY 7. If I choose an installment benefit at the
beginning of my retirement, can I switch
benefit? Normally, you may begin receiving
to an annuity later? Yes. Simply notify
your accumulation benefit upon termination
GuideStone and complete the appropriate
of service. Some employers may provide other
paperwork.
early retirement dates.
2. When can I expect to get my first benefit )F)CHOOSEANANNUITYBENEFITCAN)
switch to an installment later? No.
check? You can expect to receive your first
benefit check at the end of the month that your )F)SELECTALIFEANNUITYWITHAGUARANTEE
benefit is effective, provided your completed
period, what happens if I live longer
applications are received at GuideStone before
than my guarantee period? You will
the 15th of the previous month.
continue receiving payments for your lifetime.
)DONOTPLANTORETIREATAGE-UST) )F ) TAKE THE INSTALLMENT BENEFIT WHAT
begin receiving my retirement benefits
happens to my money when I die? The
then? No. The law generally requires you to
remaining money will be payable to your
begin receiving retirement benefits by April 1 of
designated beneficiary or beneficiaries.
the calendar year following the year you reach
age 70 1/2 or the year you retire, whichever is #AN)SELECTMORETHANONEBENEFICIARY
Yes. You must designate the beneficiaries on a
later. You should contact GuideStone before
form provided by GuideStone.
1/
attaining age 70 2 for more information.
7 HAT HAPPENS TO THE MONEY IN MY
retirement account if I die before
establishing a benefit? Your account balance
will be paid to your designated beneficiaries.
5. What happens to my retirement benefit
if I return to work? Your benefit will continue
to be paid to you. Re-employment does not
cause retirement benefits to stop, and in some
cases additional retirement contributions may
be possible.
#
AN)CHANGETHECONTINGENTANNUITANT
OFMY*OINT,IFE!NNUITY"ENEFITONCE)
begin receiving my annuity? No. All annuity
benefits are irrevocable once established.
Give us a call!
If you have questions or need further explanation regarding the material in this workbook, please
call us at '5)$% (1-888-984-8433) or visit our Web site at www.GuideStone.org.
19
Benefit Selection
#HECKLIST
Read through the "ENElT3ELECTION+IT and
review your "ENElT%STIMATE.
Complete your 2ETIREMENT"ENEFIT!PPLICATION.
Complete Form 70 for options other than a
Single Sum Benefit.
Complete your "ENEFICIARY$ESIGNATION&ORM.
Complete your2OLLOVER!PPLICATION to consolidate
retirement accounts (if needed).
Call 1-888-98-GUIDE (1-888-984-8433)
for personal assistance.
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