At retirement you pick how PERA pays you, and whether anyone keeps getting a check after you die. The choice is hard to undo, so it's worth understanding.
Our example: the PERA 2 member from the calculator, age 61 with a $6,000 HAS, whose Option 1 benefit is $4,350.00 a month.
$4,350.00 a month
Lifetime benefit. At death, any remaining DB Plan account balance plus a 100% match goes to the named beneficiary (or estate).
After you die: no monthly benefit; your named beneficiary gets any account balance left, with a 100% match.
Less than $4,350 a month
Reduced lifetime benefit; the cobeneficiary then gets half of your benefit for life. Pops up to Option 1 if the cobeneficiary dies first.
After you die: your cobeneficiary gets 50% of your reduced benefit for life.
Less than $4,350 a month
Further reduced lifetime benefit; the cobeneficiary then gets the same amount for life. Pops up to Option 1 if the cobeneficiary dies first.
After you die: your cobeneficiary gets 100% of your reduced benefit for life.
Your PERA Benefits p. 8, Benefit Options; Retirement Process pp. 5-6
PERA does not publish Option 2/3 factors; they depend on ages and may change whenever actuarial assumptions change. PERA's benefit estimate shows them.
What we show: Option 1 in dollars, and Options 2 and 3 as "less than" that amount.
Your PERA Benefits p. 8 (factors may change whenever actuarial assumptions are changed)One cobeneficiary, any person (or a Supplemental Needs Trust for a disabled child). Choice is irrevocable except in limited cases; it can be changed within 60 days after the first benefit payment. Your PERA Benefits p. 8; Retirement Process pp. 12-13, Changing Your Benefit Option or Cobeneficiary
A cobeneficiary is different from a named beneficiary. Your cobeneficiary gets a monthly benefit under Option 2 or 3. A named beneficiary gets any lump sum left in your account.
Option 1 pays you the most, for your life. Option 2 pays you less, and after you die your cobeneficiary gets half of your benefit for life. Option 3 pays you less again, and your cobeneficiary gets the same amount you were getting, for life.
PERA doesn't publish the reduction. It depends on your age and your cobeneficiary's age, and it can change when PERA changes its actuarial assumptions. Your PERA benefit estimate shows the amounts.
Under Option 2 or 3, your benefit goes up to the Option 1 amount.
No. You can name any one person, or a Supplemental Needs Trust for a disabled child.
You get Option 1.
Source: Your PERA Benefits: A Summary of the Colorado PERA Defined Benefit Plan, Revised April 2026, p. 8. Also: Retirement Process pp. 5-6, 12-13. Last reviewed .