Payment options

If you are an Amoco heritage participant then, in addition to the previously described payment options under Payment options in Receiving your benefits, the following payment options are also available to you:

  • 25% Joint and Survivor Annuity. A reduced lifetime monthly benefit based on the life expectancy of you and your joint annuitant beneficiary. Upon your death, the joint annuitant beneficiary will receive a lifetime monthly benefit at the elected level of 25%. If the joint annuitant beneficiary predeceases you, no further payments are due after your death.
  • Level Income Annuity. This option is designed to provide level income for you from the time you begin receiving payments until age 62. The plan increases your monthly payment before age 62 based on your estimated Social Security benefit. The monthly benefit is reduced when you reach age 62. You will continue to receive a somewhat level monthly payment — first from the BP RAP only, and then from the plan and Social Security combined. When you actually begin to collect your Social Security benefit, your pension from the BP RAP will not be affected by any future periodic increases to that benefit provided by the Social Security Administration.
  • Dual-Level Income Annuity Option with Joint and Survivor. If you elect this option and die, your beneficiary will receive 1%, 25%, 50%, 75% or 100% of the benefit you would have received if you had elected the joint and survivor option.

These payment options will be calculated by converting the single life annuity to the optional payment option using the applicable interest rate and applicable mortality table. See Important terms

Interest rate and mortality table

If you are an Amoco heritage participant and have a benefit commencement date on or after July 1, 2011 and you elect a lump sum payment or a 50% joint and survivor annuity form of payment, your accrued benefit under the Amoco heritage plan formula (payable as a single life annuity at age 65) will be converted using an interest rate of 4.8% and the mortality table issued by the IRS, if those factors provide a greater benefit than the benefit determined under the interest rate and mortality table that would otherwise apply under the plan.

 

Publication date: July 2013
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