At retirement, you will have the opportunity to repay any contribution deficiency by transferring funds from your 401(k), 457(b) or 403(b) plan, or to withdraw your contributions. The decision you make will impact the amount of your monthly retirement allowance. You will also be asked to select the form in which your benefits will be paid. Current options are:
- Option 1 - Refund of contributions: A portion of your contributions (plus interest) is returned to you as part of your monthly retirement allowance. Any funds not already distributed at the time of your death will be refunded to your beneficiary or estate. This option yields the largest monthly benefit in most instances, as all monthly payments cease upon your death.
- Option 2 - 100% Joint and Survivor: At your death, your beneficiary will continue to receive 100% of your retirement allowance until their death. This option yields a lower monthly benefit in most instances, as payment of 100% of your retirement allowance continues throughout the lifetime of your beneficiary.
- Option 3 - 50% Joint and Survivor: At your death, your beneficiary will continue to receive 50% of your retirement allowance until their death. This option yields a lower benefit than Option 1, but a higher benefit than Option 2, as payment of only 50% of your retirement allowance continues throughout the lifetime of your beneficiary.
Members of Police and Fire have one additional option:
- Option 0 - Widow’s Benefit: At your death, your beneficiary will continue to receive 50% of your retirement allowance until their death or remarriage, whichever first occurs. Benefits for surviving minor children are also provided, if no spouse survives you. For members of the Police and Fire, this option usually yields the largest monthly benefit, but also provides the most restrictive survivor benefit, as payments cease at remarriage.
Note: If you elect Options 0, 2 or 3, your monthly retirement allowance will be reduced based on your age and that of your beneficiary at the time of retirement.