The option you select determines what will happen to your retirement account at the end of your life. Remember: no matter which option you select, you will receive a lifetime benefit.
Maximizes your benefit and leaves nothing for a beneficiary. This may be a good option if you have no dependent or incapacitated dependents and if your spouse has independent pension income. This determination is established by law based on age.
Provides a one-time payout of your annuity balance to a beneficiary. Annuity funds will be paid to you monthly as part of your benefit, and will be depleted in 10 to 15 years. The Retirement office can give you a more exact depletion date. If you outlive your annuity balance, your beneficiary will receive nothing. If you outlive your beneficiary, you can name another. This may be a good option if you have temporary dependents, such as children in college, and you are concerned about leaving enough for them to become independent.
Provides an allowance for your life and 2/3 of that benefit for your beneficiary for the remainder of his/her life. If you outlive your named beneficiary, you will become an Option A retiree. This may be a good option if your spouse is dependent on your allowance, or if you have a permanently disabled dependent who will need a lifetime allowance.