Choosing Your Option
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.
Option A
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.
Option B
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.
Option C
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.