Common use of DROP Benefit Clause in Contracts

DROP Benefit. The Participant’s DROP Benefit shall be the regular monthly retirement benefit to which the member would have been entitled if the member had actually retired on the DROP Date (less the annuity withdrawal reduction as set forth in subsection F, if applicable). The participant’s DROP Benefit shall be credited monthly to the participant’s individual DROP Account. A member who elects to participate in the DROP may prior to or at the time of their termination of employment elect to receive his or her benefit in the form of the Plan’s Option I or Option II benefit and nominate a named beneficiary. A Participant desiring to (1) change their form of benefit at termination of employment or (2) have a new spouse recognized for purposes of the Plan’s post-retirement surviving spouse benefit, must make such election prior to termination and will receive the actuarially computed revised benefit commencing on the member’s effective date of termination. Such actuarial re-computation shall include the member’s election of Annuity Withdrawal pursuant to Subsection F herein. The term “spouse” for purposes of benefit qualification, shall mean: (1) the person to whom the Participant was legally married to on the Participant’s date of death if such death occurs during DROP Participation; or (2) the person to whom the retirant was legally married on both the effective date of termination of employment and the retirant’s date of death if such death occurs after termination of Employment. The definition of “spouse” herein may be amended pursuant to an Eligible Domestic Relations Order entered pursuant to Michigan Public Act 46 of 1991, as amended (MCL §38.1701 et seq.).