The seven choices
| Choice | What it does |
|---|---|
| Basic Allowance | Maximum lifetime allowance; all payments stop at your death. No beneficiary coverage.ACPS Handbook p. 19, The Basic Allowance |
| Option 1: Full Return of Present Value of Retiree's Basic Allowance | Lower monthly benefit; if you die before payments add up to the present value of your benefit (computed at retirement), the rest is paid in a lump sum to your surviving beneficiaries.ACPS Handbook p. 19, Option 1 |
| Option 2: 100% Survivor's Benefit | Lower monthly benefit; the same amount continues to your one beneficiary for life. The beneficiary can't be more than 10 years younger unless a spouse or disabled child.ACPS Handbook pp. 19-20, Option 2 |
| Option 3: 50% Survivor's Benefit | Lower monthly benefit; half continues to your beneficiary for life.ACPS Handbook p. 19, Option 3 |
| Option 4: Full Return of Employee Contributions Check with SRA | Lower monthly benefit; guarantees the return of your contributions and interest as of retirement. Any unrecovered balance is paid in a lump sum to your surviving beneficiaries.ACPS Handbook p. 19, Option 4 |
| Option 5: 100% Survivor's Benefit with Pop-Up | Like Option 2, but your benefit rises ('pops up') to the Basic Allowance the month after your beneficiary dies if the beneficiary dies first.ACPS Handbook p. 20, Option 5 |
| Option 6: 50% Survivor's Benefit with Pop-Up | Like Option 3, with the pop-up to the Basic Allowance if your beneficiary dies first.ACPS Handbook p. 20, Option 6 |
How the amounts work
Benefits under Options 1-6 are the Basic Allowance times actuarial factors that depend on the type of retirement, retirement date, retiree age and, for some options, beneficiary age. Options Pamphlet (10/11) PDF pp. 1-2; ACPS Handbook pp. 18-20; ACFR FY2025 p. 167; SRA web: About Health Insurance; SRA option factor table (eff. 1/1/2022)
Ages of the retiree and beneficiary are rounded up to the next age if within six months of it: 62 years 6 months uses 63; 62 years 5 months uses 62. Options Pamphlet (10/11) PDF p. 2, How the Options Work
In dollars: the handbooks' examples
ACPS: $3,432 Basic Allowance at 62, beneficiary 60
| Choice | You get a month |
|---|---|
| Basic Allowance | $3,432 nothing after you die |
| Option 1: Full Return of Present Value of Retiree's Basic Allowance | $3,318.30 × 0.96687 factor lump sum after you die, if any left |
| Option 2: 100% Survivor's Benefit | $3,000.53 × 0.87428 factor then $3,000.53 a month to them |
| Option 3: 50% Survivor's Benefit | $3,201.82 × 0.93293 factor then $1,600.91 a month to them |
| Option 4: Full Return of Employee Contributions Check with SRA | $3,318.30 × 0.96687 factor lump sum after you die, if any left |
| Option 5: 100% Survivor's Benefit with Pop-Up | $2,949.01 × 0.85927 factor then $2,949.01 a month to them |
| Option 6: 50% Survivor's Benefit with Pop-Up | $3,172.23 × 0.92431 factor then $1,586.12 a month to them |
Basic Allowance from the handbook example (ACPS Handbook p. 22, Example: Normal Service Retirement); factors from SRA's table effective January 1, 2022; the beneficiary age is our choice.
RCPB: $3,080 Basic Allowance at 65, beneficiary 63
| Choice | You get a month |
|---|---|
| Basic Allowance | $3,080 nothing after you die |
| Option 1: Full Return of Present Value of Retiree's Basic Allowance | $2,958 × 0.96039 factor lump sum after you die, if any left |
| Option 2: 100% Survivor's Benefit | $2,679.45 × 0.86995 factor then $2,679.45 a month to them |
| Option 3: 50% Survivor's Benefit | $2,865.79 × 0.93045 factor then $1,432.90 a month to them |
| Option 4: Full Return of Employee Contributions Check with SRA | $2,958 × 0.96039 factor lump sum after you die, if any left |
| Option 5: 100% Survivor's Benefit with Pop-Up | $2,629.70 × 0.8538 factor then $2,629.70 a month to them |
| Option 6: 50% Survivor's Benefit with Pop-Up | $2,837.11 × 0.92114 factor then $1,418.56 a month to them |
Basic Allowance from the handbook example (RCPB Handbook p. 21, Example: Normal Service Retirement); factors from SRA's table effective January 1, 2022; the beneficiary age is our choice.
Our Option 4 figure uses the published factor; your SRA estimate may differ.
What we use: Printed factor.
We use the pre-reformed factors for ACPS members and the post-reformed factors for RCPB members.
What we use: ACPS = pre-reformed; RCPB = post-reformed.
Option amounts use SRA's published 2022 factors.
What we use: 1/1/2022 table.
SRA's factors at a glance
Retiree ages with a beneficiary 3 years younger. The full table covers retiree ages 18 to 110 and beneficiary ages 1 to 110.
| Ages | Opt 1 | Opt 2 | Opt 3 | Opt 4 | Opt 5 | Opt 6 |
|---|---|---|---|---|---|---|
| 55 / 52 | 0.97983 | 0.89473 | 0.94444 | 0.97983 | 0.88612 | 0.93962 |
| 60 / 57 | 0.97131 | 0.87512 | 0.9334 | 0.97131 | 0.86273 | 0.92631 |
| 62 / 59 | 0.96687 | 0.86629 | 0.92836 | 0.96687 | 0.85203 | 0.92011 |
| 65 / 62 | 0.95822 | 0.85161 | 0.91986 | 0.95822 | 0.83401 | 0.9095 |
| 67 / 64 | 0.95075 | 0.84068 | 0.91345 | 0.95075 | 0.82043 | 0.90136 |
| 70 / 67 | 0.9359 | 0.82245 | 0.90258 | 0.9359 | 0.79741 | 0.88729 |
| Ages | Opt 1 | Opt 2 | Opt 3 | Opt 4 | Opt 5 | Opt 6 |
|---|---|---|---|---|---|---|
| 55 / 52 | 0.98103 | 0.90536 | 0.95033 | 0.98103 | 0.8984 | 0.94648 |
| 60 / 57 | 0.97289 | 0.88566 | 0.93936 | 0.97289 | 0.87525 | 0.93347 |
| 62 / 59 | 0.96865 | 0.87673 | 0.93432 | 0.96865 | 0.86459 | 0.92738 |
| 65 / 62 | 0.96039 | 0.86182 | 0.92578 | 0.96039 | 0.84654 | 0.91689 |
| 67 / 64 | 0.95305 | 0.85068 | 0.91932 | 0.95305 | 0.83287 | 0.90882 |
| 70 / 67 | 0.93865 | 0.83203 | 0.90832 | 0.93865 | 0.80961 | 0.89479 |
Rules to know
- You can change your option only before your first payment is normally due.
- Under Options 2, 3, 5 and 6 you may name only one beneficiary; changing it recalculates the allowance (usually lower). The change can be rescinded before the second monthly allowance is paid.
- If eligible for the State Employees Health Insurance Program, you must pick Option 2, 3, 5 or 6 and name your spouse or other eligible dependent as sole beneficiary for them to keep State health coverage after your death.
What the handbooks say
- At retirement you pick the Basic Allowance (the highest monthly amount, stopping at your death) or one of six options: Option 1 (return of the present value), Option 4 (return of your contributions), Option 2 (100% to a survivor), Option 3 (50% to a survivor), Option 5 (100% with pop-up) or Option 6 (50% with pop-up).ACPS Handbook pp. 18-20, Choosing an Allowance Option
- Pop-up options (5 and 6) raise your payment back to the Basic Allowance the month after your beneficiary dies, if they die first.ACPS Handbook p. 20, Options 5 and 6
- Under Options 2 and 5 your beneficiary can't be more than 10 years younger than you unless they are your spouse or disabled child. Options 2, 3, 5 and 6 allow just one beneficiary.ACPS Handbook pp. 19-20; Options Pamphlet PDF p. 1
- Option amounts are the Basic Allowance times an actuarial factor. SRA publishes the factors; for example, a 62-year-old ACPS retiree with a 60-year-old beneficiary has an Option 2 factor of 0.87428 (87.4% of the Basic Allowance).Options Pamphlet PDF p. 2; SRA option factor table (eff. 1/1/2022)
- For the factors, ages are rounded up to the next year once you are six months past a birthday: 62 years 6 months counts as 63, 62 years 5 months as 62.Options Pamphlet PDF p. 2, How the Options Work
- You can change your option only before your first payment is normally due.ACPS Handbook p. 18
- Check with SRASRA's published option factors are dated January 1, 2022, and its Option 4 factors are printed equal to Option 1. Your SRA estimate may differ.SRA option factor table (eff. 1/1/2022)Factor table may be superseded; Option 4 normally depends on your contribution balance.
Questions
Which option pays the most?
The Basic Allowance. It's the largest check, but it stops when you die. Every option pays less so that something goes to someone else.
What's a pop-up?
Options 5 and 6 go back up to the Basic Allowance the month after your beneficiary dies, if they die before you. That protection costs a bit more than Options 2 and 3.
Can I change my option later?
Only before your first payment is normally due. After that it's fixed.
Does my option affect health coverage?
If you're in the State Employees Health Insurance Program, a spouse or dependent can keep that coverage after your death only if you pick Option 2, 3, 5 or 6 and name them as your only beneficiary. School system retirees should ask their employer.
Source: SRPS Benefits Handbooks: Teachers' Pension System (Alternate Contributory Pension Selection; Reformed Contributory Pension Benefit), Revised April 2021, ACPS Handbook pp. 18, 19, 20, 22; RCPB Handbook p. 21; ACFR FY2025 p. 167; Options Pamphlet PDF pp. 1, 2; SRA web pages; SRA option factor table (eff. 1/1/2022). Last reviewed .