Common use of Annuity Withdrawal Clause in Contracts

Annuity Withdrawal. Upon retirement members of the bargaining unit shall be entitled to withdraw up to their accumulated contributions (including interest) to the system, provided that they agree to accept an appropriate lesser monthly benefit. Such lesser benefit is to be computed by the Township’s actuary using a method intended to prevent such contribution withdrawal from costing the Township or the Pension Fund any additional monies. For purposes of this calculation, the actuary shall use the then current interest rate for immediate annuities published by the Pension Benefit Guarantee Corporation and the actuary shall also use the mortality table used for the most recent regular actuarial determination. However, if a member applies for military time and receives the same from the Township Board, then that member’s contribution to the retirement system for military time cannot be withdrawn upon his/her retirement.