| Term |
Defination |
| Letter of Testamentary |
A Letter of Testamentary is a court order appointing the person named in the most recent will of a deceased member as executor of his estate — or, in the absence of a will, a court order appointing a public official or institution to administer the deceased member's estate. |
| life expectancy |
Length of time a person of a given age is expected to live. The period is a statistical average, based on mortality tables showing rate of death at each age. It does not seek to predict the life span of a particular individual. See mortality table. |
| life-only annuity |
An annuity payable as long as the annuitant lives, with all payments (except for return of any employee contributions) ceasing at death. |
| lump sum distribution |
Payment within one taxable year to the recipient of the entire balance payable to him or her from a trust that forms part of a qualified pension or employee annuity plan on account of his or her death, separation from service or the attainment of age 59 1/2. Distributions from KEOGH plans to owner-employees on account of disability also qualify as lump sum distributions. However, such distributions made on account of separation from service prior to age 59 1/2 do not. A lump sum distribution may qualify for special tax treatment. |
| Lump-Sum Death Benefit |
A lump-sum death benefit is a single payment benefit payable upon the death of an eligible member. If the deceased was an active member, the recipient receives the basic death benefit. If the deceased was a retired member, the recipient's lump-sum benefit depends on the type of retirement option selected by the member. |
