When you retire you choose how your benefit is paid. Option I pays the most each month; the other options pay less so that someone can keep getting a check after you die.
Largest monthly payment; stops at death. Any remaining account balance is refunded to the beneficiary or estate.
Example: $3,300.00 a month
TRS 4 SPD p. 14; TRS 1-3 SPD (2011) p. 35; KRS 161.620(1)Somewhat smaller lifetime annuity; if the member dies within the certain period, the beneficiary receives the same amount for the rest of the period. The beneficiary's age does not matter.
Survivor gets 100% for the rest of the certain period. Check with TRS of Kentucky
TRS 4 SPD p. 14; TRS 1-3 SPD (2011) pp. 35-36Beneficiary, if living, receives the same monthly annuity for life. Reduction depends partly on the age difference. An IRS rule may reduce it for a non-spouse beneficiary.
Survivor gets 100% for life. Check with TRS of Kentucky
TRS 4 SPD p. 15; TRS 1-3 SPD (2011) p. 36Same as Option III, but if the beneficiary dies first the annuity increases to the Option I amount.
Survivor gets 100% for life. Check with TRS of Kentucky
TRS 4 SPD p. 15; TRS 1-3 SPD (2011) p. 36Beneficiary, if living, receives half the monthly annuity for life. Member's annuity is more than Option III but less than Option I.
Survivor gets 50% for life. Check with TRS of Kentucky
TRS 4 SPD p. 15; TRS 1-3 SPD (2011) pp. 36-37Same as Option IV, but if the beneficiary dies first the annuity increases to the Option I amount.
Survivor gets 50% for life. Check with TRS of Kentucky
TRS 4 SPD p. 15; TRS 1-3 SPD (2011) p. 37A member-designed plan for persons with an insurable interest; must be certified by the actuary as equivalent to Option I and approved by the board. TRS of Kentucky asks for three months' notice.
Check with TRS of Kentucky
TRS 4 SPD p. 15; TRS 1-3 SPD (2011) p. 37The example is TRS of Kentucky's TRS 4 plan description example (age 57, 30 years, $60,000): $3,300.00 a month under Option I. The other options pay less by amounts TRS of Kentucky doesn't publish.
TRS of Kentucky doesn't publish the factors for Options II to V. They depend on your age and your beneficiary's age.
We show the Option I amount only. Ask TRS of Kentucky (or use Pathway) for the other options.
TRS 1-3 SPD (2011) p. 37; TRS 4 SPD pp. 14-15TRS of Kentucky does not publish option factors in its SPDs or bulletins; amounts depend on the member's and beneficiary's ages and come from TRS of Kentucky estimates (Pathway or a counselor). TRS 1-3 SPD (2011) p. 37 note; TRS 4 SPD pp. 9-10, Estimates
Qualifying events (marriage or remarriage, death of the beneficiary, divorce/annulment/dissolution when the ex-spouse is beneficiary) allow an option change within 60 days. Options I and II beneficiaries may be changed any time; Options III-IV(a) only with a qualifying event. Cancellation or option change before retirement is allowed until the 15th of the month the retirement takes effect. TRS 4 SPD pp. 19-20; KRS 161.600(6); KRS 161.630
If married and the spouse is not named primary beneficiary, the spouse must sign an acknowledgment. TRS Basics 1-3 p. 2; TRS 4 SPD p. 12
TRS 4 members also decide what to do with the supplemental benefit account; see TRS 4: two parts. For what your family gets if you die before retiring, see survivor benefits.
Option I: Straight life annuity with refundable balance; Option II: Years certain (5, 10, 15 or 20 years) and life; Option III: Joint-survivor annuity (100% to beneficiary); Option III(a): Joint-survivor annuity with pop-up; Option IV: Joint-survivor annuity, half to beneficiary; Option IV(a): Joint-survivor annuity, half to beneficiary, with pop-up; Option V: Other payment.
It depends on your age and your beneficiary's age. TRS of Kentucky doesn't publish the factors, so ask for an estimate on Pathway or from a counselor.
Qualifying events (marriage or remarriage, death of the beneficiary, divorce/annulment/dissolution when the ex-spouse is beneficiary) allow an option change within 60 days. Options I and II beneficiaries may be changed any time; Options III-IV(a) only with a qualifying event. Cancellation or option change before retirement is allowed until the 15th of the month the retirement takes effect.
Source: TRS Summary Plan Descriptions and Service Retirement bulletins, TRS 4 SPD January 2022; TRS 1-3 SPD 2011; Service Retirement bulletins March 2023, TRS 4 SPD pp. 9-10, 12, 14, 14-15, 15, 19-20, 19; TRS 1-3 SPD (2011) pp. 35, 35-36, 35-37, 36, 36-37, 37. Also: TRS Basics 1-3 p. 2; KRS 161.600, 161.620, 161.630. Last reviewed .