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Monthly Benefit Options

Your options when choosing to receive your retirement benefit are: Maximum Single Life Annuity, Option 1, Option 2, Option 3, and Customized.
 
Maximum Single Life Annuity

This provides the maximum monthly benefit amount available.  If at the time of your death you have not received an amount equal to your contributions and interest, then the balance is paid to your beneficiary(ies).
 
Option 1
Your monthly benefit is reduced and a “Present Value” is assigned to your account.  If at the time of your death you have not received in monthly benefits an amount equal to your account’s Present Value, then the balance is paid to your beneficiary(ies).
 
Option 2
Your monthly benefit is reduced based on your age and gender and the age and gender of your survivor annuitant at retirement.  At the time of your death, the same monthly benefit is paid to your survivor annuitant throughout his or her lifetime.
 
Option 3
Your monthly benefit is reduced based on your age and gender and the age and gender of your survivor annuitant at retirement.  At the time of your death, one-half of your monthly benefit is paid to your survivor annuitant throughout his or her lifetime.
 
Customized Option
Your monthly benefit is customized as none of the other options meets your needs.  This option is subject to certain conditions.  You should contact a PSERS regional representative for more information on this option.
 
Under Options 2, 3, or Customized (if it included a survivor), you may name a new survivor annuitant and/or elect a different option if your marital status changes or your designated survivor annuitant dies before you.  PSERS will recalculate your monthly benefit based on your new survivor annuitant’s age and gender and your age and gender at the time of the change.  It is possible that your monthly benefit will be further reduced in this recalculation. If your survivor annuitant dies before you and you do not elect a different option, you will continue to receive a reduced monthly benefit.  Special rules apply if you are divorced.  Contact your local regional office for more information before making a change.
 
Disability Options
If you are vested, you may elect the Maximum Single Life Annuity or a survivor annuitant option (Options 2, 3, or Customized).  Your beneficiary(ies)/survivor annuitant will receive a benefit based on what you would have received under a regular retirement benefit.