Page 5 - 2018 How to Retire from Florida

Question #3:

Which FRS pension

option should I choose?

FRS Pension Plan Participants Option 3 - Joint & Survivor

There is no more important decision It provides a reduced monthly
you will ever make than which of the benefit payment to you for your
four pension options you should take. lifetime. Upon your death, your
Begin to educate yourself on this joint annuitant* will receive a
complex subject before you enter the lifetime monthly benefit payment in
Deferred Retirement Option Program the same amount as you were
(DROP). receiving. No further benefits are
payable after both you and your
Once you select your Pension Payout joint annuitant die.
Option, your decision is irrevocable,
meaning you cannot change it later. Option 4 - 2/3 Monthly Benefit
It provides an adjusted monthly
Option 1: Single Life Annuity benefit payment to you while both
This option gives you the highest you and your joint annuitant* are
amount of monthly income for your living. Upon the death of either you
lifetime. However, upon your death, the or your joint annuitant, the monthly
monthly benefit will stop and your benefit payment to the survivor is
beneficiary will receive only a refund of reduced to two-thirds of the
the contributions you paid, if any, that monthly benefit you were receiving
exceed the amount you received in when you both were living. 3
benefits.
Both Option 3 and Option 4
Option 2: Reduced Monthly Benefit
provide that upon the death of
It provides a reduced monthly benefit
the member, a joint annuitant
payment to you for your lifetime. If you who is under age 25 will receive
die after 10 years of retirement, no tthe Option 1
benefits are payable to your There is no benefit until age 25,
beneficiary. However, if you die more important at which time the
within 10 years (120 months) after decision you will benefit terminates.

you retire, your beneficiary will ever make than A disabled joint
which of the
receive a monthly benefit payment annuitant will
four standard
in the same amount you were pension options continue to receive
receiving for the balance of the 120- you should take. the benefit for the
month period from when you started
receiving benefits. After that time, no duration of the
further benefits are payable. Important disability.
note: The DROP years count toward the
120 months.
Your joint annuitant is your spouse, your natural or legally adopted child who is either under age 25 or is physically or
mentally disabled and incapable of self-support (regardless of age), or any person who is financially dependent upon you for
one-half or more of his or her support, and is your parent, your grandparent, or a person for whom you are the legal guardian.