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Overview
- The survivor option dictates what benefits, if any, are
payable after your death.
- This choice will determine whether the state will continue
to pay pension checks or health insurance coverage for your
dependents after your death.
- When you retire you must select one of 4 different income
payment options (Survivor Options).
- Option D - Straight Life Annuity
- Option A - 50% Spouse
- Option B - 50% or 100% Contingent Annuitant
- Option C - 10 Year or 20 Year Period Certain
- This choice is irrevocable.
o You will not be able to switch to another option once your pension
goes into pay status.
- Regardless of the option you choose, you will receive a monthly
pension for the rest of your life, and, if you qualify for health
insurance as a benefit, the health insurance coverage will extend to
your eligible dependents so long as you are alive.
- The cost of selecting a survivor option varies according to the
option you choose; your age; and, in some cases, the age of the
person you are protecting. For an estimate of the cost under any of
the different survivor options please refer the following benefit
estimator: (Tier I benefit
estimator)
Option D - Straight Life Annuity
CO-902.pdf
- This option pays you the maximum monthly benefit for your
lifetime only.
- All benefits will end upon your death, including
state-sponsored health insurance for any surviving eligible
dependents.
Option A - 50% Spouse
CO-899.pdf
- This benefit guarantees a monthly benefit and ,if eligible, state-sponsored
health insurance (assuming you and your
spouse are still married when you die) for you and your spouse.
- This option will pay you a reduced benefit for your lifetime in
exchange for the protection that, should you pre-decease your
spouse, the State will continue to pay 50% of your reduced benefit
for your spouse's lifetime.
- Your benefit will be reduced by a factor that accounts for both
your age and your spouse's age.
- This option applies to retirees who have been married for at
least one year.
- Under no circumstances can you change options or replace your
spouse with another annuitant.
Option B - 50% or 100% Contingent Annuitant
CO-900.pdf
- This option provides you a reduced monthly benefit for your life
and allows you to guarantee lifetime payments after your death to
any one person. After your death, a percentage of your reduced
benefit, either 50% or 100%, whichever you choose, will continue for
your contingent annuitant's life.
- Your benefit will be reduced by a factor that takes into
account the level of protection you are guaranteeing (50% or
100%) along with your age and the age of your contingent
annuitant.
- Your contingent annuitant can be any one person. This
person does not need to be a spouse or a family member, although you
are free to name a spouse under this option.
- If eligibility requirements are met, this option will also provide lifetime health insurance to any
contingent annuitant who qualifies as your eligible dependent at the
time of your death.
- Under no circumstances can you change options or substitute your
contingent annuitant.
Option C - 10 Year or 20 Year Period
Certain
CO-901.pdf
- This option provides you a reduced monthly benefit for your
lifetime in exchange for the guarantee that monthly benefits will be
paid for at least 10 or 20 years from your retirement date
(whichever you choose).
- If you should die within 10 years (120 payments) or 20 years
(240 payments) from your date of retirement, the remaining payments,
in accordance with your selection, will be made to your contingent
annuitant(s).
- This is the only option that allows you to name more than
one contingent annuitant, each of whom would receive any
remaining monthly payments in equal shares.
- Your benefit will be reduced by a factor that takes into account
the period of time for which you are providing protection and your
age. Under this option, the age of your contingent annuitant(s) does
not impact the amount of your monthly benefit.
- Your named contingent annuitant(s) will only receive benefits
under this option if you die within the protected period.
- This option provides no guarantee of benefits to anyone
other than the retiree beyond the protection period.
- Although your pension (including health insurance for any
eligible dependents) will continue for your lifetime, if you die
after the State has paid all of the guaranteed payments, all
benefits will end upon your death (including health insurance
for any eligible dependents).
- If your contingent annuitant dies before you, and the protection
period has not expired, you may name a new contingent annuitant.
- Under no circumstances can you change your option.
Spousal Waiver
- If you have been married for at least 1 year prior to your date
of retirement, in order for you to select an option which does not
provide your spouse with lifetime protection, your spouse must
consent by completing a spousal waiver form.
CO-1047-pdf
Benefit Payment Options and Health Insurance
- Regardless of the option you choose, if you qualify for health
insurance as a benefit, the health insurance coverage will extend to
your eligible dependents so long as you are alive.
- Your option choice will determine whether health insurance
continues for any eligible dependents after your death. In order to
qualify for the continuation of health insurance benefits after your
death, your surviving contingent annuitant must:
- Be your eligible dependent at the time of your death, AND
- Must be entitled to continued monthly payments
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