Special Pension Benefit Election Guide

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Understand

Explore your payment options

During the special benefit election window, you may choose how and when to receive your pension benefit.

Understanding more about the different payment options can help you make the best choice for your personal situation. If your balance is greater than $7,000, consider the key differences between the lump sum payment and immediate monthly annuity payments summarized in the table below. Then, learn more about your distribution options. Remember that Option 3 – Defer Payment Until Later is also available (with no action required).

If your balance is $7,000 or less, you’re required to take your benefit as a lump sum during the special benefit election window.

Option 1 – Lump Sum Payment
Option 2 – Immediate Monthly Annuity Payment
Number of payments
You get the entire amount one time in October 2025.
You receive a monthly payment for the rest of your life starting in October 2025.
Investment choice
You choose how to invest your lump sum payment. Investment performance will impact the amount of your benefit.
You have no investment decisions to make, and investment performance does not affect your monthly annuity payment.
Death benefit
You may choose your spouse/domestic partner or name another beneficiary and pass the full amount of any remaining funds to your family or heirs.
You may choose your spouse or domestic partner to have a survivor benefit. However, not all monthly payments have additional death benefits if your beneficiary predeceases you.
Inflation
You can attempt to keep up with inflation through your investment choices and by managing withdrawals. It is up to you to manage your money and make it last.
Once you start payments, the amount of your monthly payment is fixed and does not increase due to the cost of living, etc. Inflation can erode the buying power of your fixed monthly annuity payments.
Flexibility
You will have access to your money when you need it. The money can be used for retirement income or other needs that are either planned or unexpected.
Your monthly annuity payments are a set amount for the rest of your life. You may not change the amount if you have a planned or unexpected need for money.
Taxes
If you do not timely roll over your benefit to a traditional IRA or qualified retirement plan, your pension benefit will be subject to tax immediately. However, amounts that are rolled over will continue to grow in a tax deferred manner.
Your monthly payments will be subject to tax. See your Election Kit for more information.
Life expectancy
You have the risk of outliving your lump sum.
You will receive monthly income for your lifetime — no matter how long you live.
Estate planning
You can pass any money you have left from your payout at the time you die on to your heirs.
The monthly annuity is only payable to you (and your surviving spouse/domestic partner depending on your annuity election) during your lifetime.

Tips for finding a financial advisor

We encourage you to consider consulting with your personal financial and/or tax advisor if you have questions about the best choice for your situation. Take advantage of the support Dow is making available to help you make your decision.

Questions?

Review this list of frequently asked questions and answers (FAQs). If you still have questions about the special benefit election window, please call the Dow PPA Pension Plans Transition Service Center at (855) 286-7207 Monday through Friday. 8:00 a.m. and 5:00 p.m. CT.

For questions related to tax and financial implications, call PwC at (833) 566-2976. As part of the special benefit election window, Dow is providing access to this one-on-one support — all at no cost to you. Support is confidential and unbiased and coaches are not acting on behalf of Dow.

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