| Joe retires two months before his 59th birthday after working in IPERS-covered employment for 21 years and earning a high three-year average salary of $42,014.26. His wife is age 60 and 10 months. His IPERS contributions plus interest total $44,563.91. Here’s the amount of his benefits under each option. |
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 when you die.
After retirement, you cannot change death benefit amount.
Death benefit cannot exceed your total contributions plus interest. |
Yes. |
No. |
Monthly Benefit Payable to Joe: $1,331.76
Minimum Lump-Sum Benefit Payable to Joe’s Wife in the Event of His Death: $1,000
Maximum Lump-Sum Benefit Payable to Joe’s Wife in the Event of His Death: $44,000 (Joe's monthly benefit would be $1,249.20). |
Option 2:
Annuity With Variable Decreasing Lump Sum |
Monthly benefit for life.
At your death, beneficiary receives difference between retirement benefit received and accumulated contributions (total contributions plus interest).
Most retirees recover their IPERS contributions plus interest within the first three years of receiving pension payments. |
Maybe. |
No. |
Monthly Benefit Payable to Joe: $1,330.80
Lump-Sum Benefit Payable to Joe’s Wife in the Event of His Death: $12,624.71 after two years of monthly payments. After Joe receives 34 monthly payments, there will not be any death benefit payable to his wife. |
Option 3:
Single Life Annuity |
Monthly benefit for life.
At your death, no further benefits payable. |
No. |
No. |
Monthly Benefit Payable to Joe: $1,333.68
Benefit Payable to Joe’s Wife in the Event of His Death: None |
Option 4:
100%, 75%, 50%, or 25% Joint and Survivor Annuity |
Monthly benefit for life.
At your death, contingent annuitant receives 100%, 75%, 50%, or 25% of your benefit for life.
Restrictions on percentages apply if contingent annuitant is not your spouse and is more than ten years younger than you.
You cannot change your contingent annuitant after IPERS has made the first monthly payment. |
No. |
Yes, if your contingent annuitant outlives you. |
Monthly Benefit Payable to Joe:
| 100% |
$1,174.50 |
| 75% |
$1,210.62 |
| 50% |
$1,249.04 |
| 25% |
$1,289.97 |
Monthly Benefit Payable to Joe’s Wife in the Event of His Death:
| 100% |
$1,174.50 |
| 75% |
$907.96 |
| 50% |
$624.52 |
| 25% |
$322.49 |
|
Option 5:
120-Month Term Certain Annuity |
Monthly benefit for life.
If you die before receiving 120 payments, beneficiary receives benefit (otherwise, no further benefits payable).
If beneficiary is an individual, beneficiary receives monthly benefit for 120 months minus payments received by you.
If beneficiary is several individuals, a trust, or an estate, payment is made in a lump sum equivalent to the value of the remaining monthly payments.
Must be under age 90 to elect this option. |
Maybe. If your beneficiary is several individuals, a trust, or an estate, payments will be made in a commuted lump sum based on today’s value of the remaining monthly payments. |
Maybe. A monthly benefit can only be paid if you named one beneficiary and if you received less than 120 payments. |
Monthly Benefit Payable to Joe: $1,301.79
Monthly Benefit Payable to Joe’s Wife in the Event of His Death After 24 Months: $1,301.79 for 96 months; thereafter, no benefits payable.
Lump-Sum Benefit Payable If Joe Designated Multiple People, an Estate, or a Trust: $97,600.52 if Joe dies after 24 months of pension payments.
|
Option 6:
100%, 75%, 50%, or 25% Joint and Survivor Pop-Up Annuity |
Monthly benefit for life.
At your death, contingent annuitant receives 100%, 75%, 50%, or 25% of your benefit for life.
You cannot change your contingent annuitant after IPERS has made the first monthly payment.
Restrictions on percentages apply if contingent annuitant is not your spouse and is more than ten years younger than you.
If contingent annuitant dies before you, benefit pops up to what it would have been under Option 2. You may designate a new beneficiary at this time.
|
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. |
Monthly Benefit Payable to Joe:
| 100% |
$1,157.91 |
| 75% |
$1,197.43 |
| 50% |
$1,239.75 |
| 25% |
$1,285.16 |
Monthly Benefit Payable to Joe's Wife in the Event of His Death:
| 100% |
$1,157.91 |
| 75% |
$898.07 |
| 50% |
$619.87 |
| 25% |
$321.29 |
|
