Retirement Decisions

As you get closer to retirement, there are a few choices you will need to make before you apply.

Termination Date

Your termination date is the last day you are considered a public employee. For most members, it will be the last day you worked. If you are actively working in public employment, you will need to terminate from your position before beginning your benefit.

Benefit Effective Date

Your benefit effective date is the month you begin collecting your pension. You will need to decide if you want to collect your pension immediately or at a later date. If you are no longer working in public service, you must begin drawing your benefit by age 73. However, unlike Social Security, if you are no longer working in public service, your benefit will not increase after you reach your plan’s full retirement age. If you defer past full retirement age, you may be losing out on benefits.

Single-Life Option

The single-life benefit is the largest monthly benefit option available to you, and payable to you for your lifetime only. Any remaining balance of your contributions will be paid in a lump sum to your beneficiary(ies), and your account will be closed. 

The balance of your contributions declines as PERA pays your monthly benefit. Most members exhaust their contributions within 3 to 5 years of retirement. Once your contributions are exhausted, you will still receive a lifetime benefit, but upon your death your account will be closed, and no one else will be due a payment. 

Survivor Option

Instead of a single life benefit, you may choose to extend your monthly benefit across a second lifetime and select one of four survivor options–25%, 50%, 75%, or 100%. Your monthly amount is reduced, and the reduction is based on your chosen survivor’s age—the younger the survivor, the larger the reduction. Upon your death, a benefit is then paid to your designated survivor based on the option you selected. However, if your named survivor is not your spouse, age restrictions may apply when selecting the 75% or 100% options. If you are married, your retirement estimates in myPERA automatically calculate survivor benefits. You can also use the Retirement Calculator in myPERA, or contact a PERA representative.

If your survivor dies before you, you may not name a second survivor, but your monthly benefit will “bounce back” to the larger single-life benefit amount—the amount you would have received had you not chosen to name a survivor—including any annual increases. 

Who you can Choose Your Survivor

You can choose any one individual—regardless of their age or relationship to you. If you choose a non-spouse survivor, age restrictions may apply when selecting the 75% or 100% options. 

If Your Survivor Dies Before You

You may not name a second survivor, but your monthly benefit will “bounce back” to the larger single-life benefit amount—the amount you would have received had you not chosen to name a survivor—including any annual increases.

If You Both Die

If any contributions remain, they will be paid in a lump sum to your beneficiary (ies), and your account will be closed.