Retirement Benefit Payment Options

Members

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You may choose monthly benefit payments under one of six options that differ according to the death benefits provided. You select an option when you file an application for retirement benefits.

You may not change your option once your first benefit payment is issued. It is important to become familiar with the differences in the six options so that you can make the choice that best suits you. Even though IPERS does not provide financial planning counseling, IPERS can explain the various options to you and provide you an estimate for each option to help you decide.

As a member, no matter which option you choose, monthly benefits are paid for your life. Payments after your death are as follows.

NOTE: For Options 4 and 6, you will designate a contingent annuitant instead of a beneficiary. A contingent annuitant is someone who may receive monthly payments after your death.

Content

Option	Description	Important to Note	Death Benefits Payable: Lump Sum Benefit	Death Benefits Payable: Monthly Benefit
Option 1: Annuity With Fixed Lump-Sum Survivor Benefit	Monthly benefit for life. You specify an amount, in $1,000 increments, to be paid in a lump sum to your beneficiary(ies) when you die.	After retirement, you cannot change the death benefit amount. The death benefit amount cannot exceed your total contributions plus interest.	Yes	No
Option 2: Annuity With Variable Decreasing Lump-Sum	Monthly benefit for life. After your death, your beneficiary receives the difference between the retirement benefits you received and your total contributions plus interest.	A death benefit is not guaranteed. Once you have received monthly benefits adding up to the amount of your contributions plus interest, no death benefit will be payable to your beneficiary(ies).	Maybe	No
Option 3: Single Life Annuity	Monthly benefit for life.	After your death, no further benefits are payable.	No	No
Option 4: 100%, 75%, 50%, or 25% Joint and Survivor Annuity	Monthly benefit for life. After your death, your contingent annuitant receives 100%, 75%, 50% or 25% of your monthly benefit for life.	Restrictions on percentages apply if your contingent annuitant is not your spouse and is more than 10 years younger than you. You cannot change your contingent annuitant after IPERS has made your first monthly payment.	No	Yes, if your contingent annuitant outlives you.
Option 5: 120-Month Term Certain Annuity	Monthly benefit for life. If you die before receiving 120 payments, your sole beneficiary begins receiving a monthly benefit or your multiple beneficiaries receive a lump-sum death benefit (otherwise, no further benefits payable).	If you designate only one person as your beneficiary, your beneficiary receives the same monthly benefit for the remainder of the 120 months. If you designate more than one person, a trust or an estate as your beneficiary, payment is made in a lump sum equivalent to the value of the remaining monthly payments as of your date of death. Must be under age 90 to elect this option.	Maybe. If you name more than one person, a trust or an estate as your beneficiary, payments will be made in a commuted lump sum based on today's value of the remaining monthly payments.	Maybe. A monthly benefit can be paid only if you named one beneficiary and received less than 120 payments.
Option 6: 100%, 75%, 50%, or 25% Joint and Survivor Annuity With Pop-Up Annuity	Monthly benefit for life. After your death, your contingent annuitant receives 100%, 75%, 50% or 25% of your monthly benefit for life.	Restrictions on percentages apply if your contingent annuitant is not your spouse and is more than 10 years younger than you. If your contingent annuitant dies before you, your benefit pops up to what it would have been under Option 2. You may designate a new beneficiary at that time. You cannot change your contingent annuitant after IPERS has made the first monthly payment.	Maybe, if your contingent annuitant dies before you and any balance remains of your total contributions plus interest.	Yes, if your contingent annuitant outlives you.

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