The benefit that you receive is a lifetime pension. The Retirement System has set up optional methods of paying the pension so that you can use the benefit to best meet your financial needs.
Provides a retirement benefit payable based on the simple retirement benefit calculation and, if applicable, the early retirement reduction factor. This benefit is payable for as long as you live. If you should die before you have received retirement payments totaling the amount of your contributions to the plan, then your beneficiary will receive a lump sum payment of the remainder of your contributions and interest.
Provides a reduced benefit to you for the rest of your life plus upon your death, the same benefit for your beneficiary for the balance of your beneficiary’s life. If your beneficiary dies before you do, then your retirement benefit will be increased, at that time, to the amount payable to you under the Basic Benefit formula. After the death of both you and your beneficiary, no further benefits are payable.
Provides a reduced benefit to you for the rest of your life plus, upon your death, a benefit for your beneficiary that is 50% of your monthly allowance. If your beneficiary dies before you, your monthly allowance is increased at that time to the amount payable under the Basic Benefit formula. After the death of you and your beneficiary no further benefits will be paid.
Pays a slightly higher benefit than the Basic Benefit but it eliminates the payment of the remainder benefit to your estate or to your beneficiary that is offered with the Basic Benefit.
IMPORTANT: If you elect Benefit Option 1 or 2, your beneficiary selection is irrevocable for life once you receive your first retirement check.