Forms of Payment

You may begin to receive Plan benefits any time after you separate from service (subject to federal, university and investment provider rules regarding forms of benefit payments).

Benefits in the Stanford Contributory Retirement Plan are payable in several ways:

1. As an annuity,
2. In a lump sum, or
3. As a combination of both.

You may also choose to transfer all or a portion of your account balances to an Individual Retirement Account (IRA) or a Roth IRA, to another 403(b) plan, to a governmental 457(b) plan, or to a 401(a) qualified employer plan in a direct rollover.

Note: If you invest in a TIAA Traditional Annuity RA account, your distribution will be paid over a minimum of 10 years. Contact TIAA-CREF for more information.

If you’re married at the time your benefit is distributed:

• Your distribution must be paid in the form of a 50% Joint and Survivor Annuity, also known as a Qualified Joint and Survivor Annuity (QJSA),unless your spouse has consented in writing to another form of payment, and
• Certain other spousal rights may apply to the distribution.

These rules apply regardless of the type of payment you request – an annuity or lump sum.

We recommend you discuss your options with a tax advisor before you select your form of payment. Once payments start, you cannot change the form of payment to a different option.

Payment as an Annuity

If you elect to receive your benefit as an annuity, you are electing to receive payments in the same amount on a monthly or quarterly basis for a specified period of time (e.g., 10 years, your lifetime) at an amount based on your age and an assumed or actual rate of return on your SCRP account.

Types of Annuity Payments Available

• Qualified Joint and Survivor Annuity (QJSA): A QJSA provides annuity payments for your lifetime. After your death, your beneficiary will receive payments equal to a portion (usually 50%) of your monthly payment for his or her lifetime.

  Because the annuity payments might be spread over the lives of two individuals, the amount of the payment will be less than it would have been under a single life annuity. The exact amount of the annuity will depend on you and your spouse’s age and other actuarial factors at the time payments begin.

• Single life annuity: A single life annuity pays a benefit on a regular basis (monthly or quarterly) for your lifetime. No payments are made to a beneficiary when you die. Spousal consent required if you are married.

• Variable annuities: Variable annuities reflect the value of the underlying investments (stock annuities, money market annuities, or a combination of both). Payments vary from year-to-year, depending on the investment performance of the underlying investments.

• Fixed annuities: Fixed annuities provide a guaranteed minimum payment. Interest rate assumptions may change from year-to-year, causing the annuity amount to fluctuate, but it will not drop below a minimum guaranteed amount.

Payment as a Lump Sum

When you elect to receive a lump sum payment, you are electing to withdraw all or a portion of your benefits.

If you elect a distribution while still employed by Stanford, any additional benefit you earn from the plan will not be affected. Only a lump sum option is available in this case.