When dividing a defined benefit plan, it is critical to know the types of benefits available under the terms of the applicable plan. Rather, the Alternate Payee’s award is typically made in terms of a monthly benefit payable for either the lifetime of the Participant (a "shared payment") or the lifetime of the Alternate Payee (a "separate interest"). With this type of plan, the Alternate Payee is usually not awarded a lump sum cash payment from the plan. The type of benefits available may vary significantly from plan to plan.
It is rare, but some plans may allow for a lump sum payment of benefits instead of a monthly payment. Benefits accumulated under defined benefit plans are often referred to as "accrued benefits". Benefits are generally payable to a participant upon reaching "normal retirement age" for the remainder of the Participant's lifetime.
Benefits paid at the time of retirement are calculated using a formula based upon years of "credited service" and the Participant’s compensation information. A defined benefit plan is traditionally referred to as a "pension plan." This type of plan typically provides participants with a monthly retirement benefit upon reaching a specific age for either a specific period of time, or for the Participant’s lifetime, depending upon the form of benefits offered by the plan and selected by the Participant. GENERAL CABLE CORPORATION MASTER PENSION PLAN is a DEFINED BENEFIT PLAN.
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