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Choosing Your Form of Annuity Payment

Choosing Your Form of Annuity Payment

Your annuity payments can take any of the following forms:

  • Single-Life Annuity
    You receive monthly annuity payments for life. Payments stop at your death.
  • 100%/100% Joint and Survivor Annuity
    When either you or your joint annuitant dies, the survivor’s annuity will be based on the same number of annuity units for life.
  • 80%/80% Joint and Survivor Annuity
    When either you or your joint annuitant dies, the survivor’s lifetime annuity income will be based on 80% of the original number of annuity units.
  • 100%/60% Joint and Survivor Annuity
    If your spouse dies first, your annuity continues at 100% for the rest of your life. If you die first, your spouse receives 60% of your monthly annuity for life.

In general, the larger the percent to the survivor, the smaller the initial dollar payment. The 100% choice, for example, leaves the largest payments to your spouse…but of the three choices, it makes the smallest initial payment to you, the member. The value of the benefit under all three options is equal. It’s just that if an option promises a larger payment later on, it needs to pay a smaller one initially.

If you die or your spouse dies within six years of retirement, joint annuities will be recomputed on a single-life basis, subtracting payments already made. The single-life annuity will then be compared with the joint-life annuity and the larger amount will be paid to the survivor.