Washington Administrative Code › Title 415 - Retirement Systems, Department of › Chapter 415-02 - General provisions › ACTUARIAL FACTORS AND SCHEDULES › Section 415-02-380 - How will my retirement benefit be affected if I choose a survivor option?

Current through Register Vol. 24-14, July 15, 2024
If you choose a survivor benefit option, your benefit will
				  be affected as described in this section.
(1)
What is a survivor benefit
				option?
A survivor benefit option will pay a lifetime monthly benefit to
				your survivor beneficiary after your death.
(2)
What is a survivor
				beneficiary?
A survivor beneficiary is the person you designate to
				receive a lifetime monthly benefit after your death.
(3)
What benefit options are
				available?
All available benefit options, including survivor benefit
				options, are described in detail for each system and plan in the following
				state laws and agency rules:
LEOFF Plan 1:
RCW
						  41.26.164
WAC
						  415-104-202
LEOFF Plan 2:
RCW
						  41.26.460
WAC
						  415-104-215
PERS Plan 1:
RCW
						  41.40.188
WAC
						  415-108-326
PERS Plan 2:
RCW
						  41.40.660
WAC
						  415-108-326
PERS Plan 3:
RCW
						  41.40.845
WAC
						  415-108-326
PSERS:
RCW
						  41.37.170
WAC
						  415-106-600
SERS Plans 2 and 3:
RCW
						  41.35.220
WAC
						  415-110-610
TRS Plan 1:
RCW
						  41.32.530
WAC
						  415-112-504
TRS Plan 2:
RCW
						  41.32.785
WAC
						  415-112-505
TRS Plan 3:
RCW
						  41.32.851
WAC
						  415-112-505
WSPRS Plan 1:
RCW
						  43.43.278
WAC
						  415-103-215
WSPRS Plan 2:
RCW
						  43.43.271
WAC
						  415-103-225
(4)
How will selecting a survivor benefit option affect my monthly retirement
				benefit?
If you select a survivor benefit option your monthly retirement
				benefit will be reduced to offset the cost of potentially paying the benefit
				for a longer period of time. The reduction will be based on survivor option
				factors that are available on the DRS website.
(5)
Does my survivor beneficiary's age
				affect how much my monthly retirement benefit will be reduced?
Yes. Your
				survivor beneficiary's age is used in determining the amount of your monthly
				retirement benefit and the benefit of your survivor beneficiary. The younger
				the survivor beneficiary, the longer they are expected to receive a benefit.
				Your monthly benefit will be reduced accordingly.
(a)
Example:
Kendra, a PERS Plan 2 member, chooses Option 3 (joint and 50
				  percent survivorship) at retirement. Her monthly Option 1 nonsurvivor benefit
				  amount, which would stop at the time of her death, is $2,000.00. She names her
				  nephew, Steve, as her survivor beneficiary. This means, if Kendra dies before
				  Steve, Steve will receive a monthly benefit equal to half the amount Kendra was
				  receiving. Steve is 30 years younger than Kendra. The department will reduce
				  Kendra's monthly retirement benefit using the survivor option factor for a
				  member who is 30 years older than the beneficiary. For illustration purposes in
				  this example only, we will use 0.776 as the corresponding Option 3 benefit
				  factor (actuarial factors change periodically). As a result, Kendra's Option 3
				  monthly benefit amount will be $1,552.00 ($2,000.00 x 0.776).
(b)
Example:
Mark, a LEOFF Plan 2 member, chooses Option 2 (joint and 100
				  percent survivorship) at retirement. His monthly Option 1 nonsurvivor benefit
				  amount, which would stop at the time of his death, is $2,000.00. He names his
				  wife, Susan, as his survivor beneficiary. This means, if Mark dies before
				  Susan, Susan will receive a monthly benefit equal to the amount Mark was
				  receiving. Mark is five years younger than Susan. The department will reduce
				  Mark's monthly retirement benefit using the survivor option factor for a member
				  who is five years younger than the beneficiary. For illustration purposes in
				  this example only, we will use 0.898 as the corresponding Option 2 benefit
				  factor (actuarial factors change periodically). As a result, Mark's Option 2
				  monthly benefit amount will be $1,796.00 ($2,000.00 x 0.898).