| Option | What it pays | Amount |
|---|---|---|
| Option One | Maximum monthly benefit for your life. Nothing is paid to beneficiaries after you die, except that if you die within 90 days (Tier 1) or 120 days (Tier 2) of retiring, the retirement is canceled and treated as a death before retirement. | the formula amount |
| Option Twoneeds member contributions | Slightly reduced lifetime benefit. At your death your beneficiaries get the balance of your member contributions not yet paid out. Tier 1 Noncontributory: only if you transferred contributions from the Contributory System. Tier 2: only if you have Tier 2 Hybrid member contributions. | Check with URS |
| Option Threespouse only | Reduced lifetime benefit; your spouse at retirement then gets the same lifetime benefit. | Check with URS |
| Option Fourspouse only | Reduced lifetime benefit; your spouse at retirement then gets half of it for life. | Check with URS |
| Option Fivespouse only | Option Three, but if your spouse dies first your benefit reverts to the Option One amount. | Check with URS |
| Option Sixspouse only | Option Four, but if your spouse dies first your benefit reverts to the Option One amount. | Check with URS |
Short answer: Option One pays the largest monthly benefit, for your life only. Options Two to Six pay less so a beneficiary is protected, and your choice is final on your retirement date. Tier 1 members can also take a partial lump sum of 12 or 24 months of benefits, with a smaller monthly check. URS publishes no option factors, so only Option One is shown in dollars. See survivor benefits, the COLA and taxes, or see Option One for URS's example in the calculator.
Options Two to Six reduce the Option One benefit 'based on actuarial computations'. URS doesn't publish the factors in any source we have; ask URS for the amounts. Utah Code 49-13-402(3), 49-22-305(3); URS Actuarial Valuation (Jan. 1, 2025), App. 2, pp. 99-100, 119, item 15
Options Two to Six are actuarial reductions of Option One; no source publishes the factors.
We show Option One only; the other options are described, not priced.
What would settle it: URS's option factor tables or a URS estimate.
- You choose one of six options at retirement. Option One is the maximum, for your life only. Option Two is slightly less and refunds unused member contributions (only if you have them). Option Three pays your spouse the same amount for life; Option Four pays your spouse half. Options Five and Six are Three and Four with a pop-up back to Option One if your spouse dies first.Tier 1 Highlights (2026-27), pp. 18-19; Tier 2 Highlights (2026-27), pp. 18-19
- Options Three to Six can only name your spouse at retirement, who can't be changed. Nothing can be altered or canceled after your retirement date.Tier 1 Highlights (2026-27), pp. 14, 18
- Tier 1 only: you may take a partial lump sum of 12 or 24 months of your benefit at retirement, for a permanently reduced monthly benefit. Tier 2 members can't.Tier 1 Highlights (2026-27), p. 20; Utah Code 49-11-1001
- If you die within 90 days of retiring under Option One (120 days in Tier 2), the retirement is canceled and treated as a death before retirement.Tier 1 Highlights (2026-27), p. 18; Tier 2 Highlights (2026-27), p. 18
After a divorce, an Option Five or Six retiree may increase the monthly benefit depending on the court order; with no court order the benefit may convert to Option One. Tier 1 Highlights (2026-27), p. 19; Utah Code 49-13-402(6), 49-22-305(5)
The partial lump-sum option (Tier 1 only)
Tier 1 only: at retirement you may take a lump sum equal to 12 or 24 months of your lifetime monthly benefit, in exchange for a permanently reduced monthly benefit. Tier 2 members can't elect it. Tier 1 Highlights (2026-27), p. 20; Utah Code 49-11-1001
The lump sum on a $3,000 monthly benefit (our arithmetic, not a URS example):
| Lump sum | Paid once | First payment if still estimated |
|---|---|---|
| 12 months | $36,000 | $28,80080%, rest later |
| 24 months | $72,000 | $57,60080%, rest later |
If your benefit is still estimated when the first check is issued, URS pays 80% of the PLSO, then the remaining 20% once the benefit is finalized. Tier 1 Retirement Guidebook (Sept. 2026), p. 11
The monthly benefit is reduced by the actuarial value of the lump sum; URS doesn't publish the reduction.
The PLSO permanently reduces the monthly benefit by the actuarial value of the lump sum; URS doesn't publish the reduction.
We show the lump sum (12 or 24 x the monthly benefit) but not the reduced monthly amount.
What would settle it: A URS estimate with the PLSO.
PLSO payments are generally taxable; 20% federal withholding applies and a 10% early-withdrawal penalty may apply before 59 1/2 (not if you work into or beyond the year you reach 55). You can roll it to a URS 401(k). Tier 1 Retirement Guidebook (Sept. 2026), p. 18
The calculator shows your Option One amount and the lump sum. For what a survivor receives, see death and survivor benefits.
Questions
What are the URS retirement options?
Six options. Option One is the maximum, for your life only. Option Two refunds unused member contributions. Options Three and Four continue 100% or 50% to your spouse. Options Five and Six do the same and pop back up to Option One if your spouse dies first.
Can I name my child as my survivor under URS?
Not for Options Three to Six: they can only name your spouse at retirement.
What is the URS partial lump-sum option?
Tier 1 only: 12 or 24 months of your benefit in one payment at retirement, for a permanently smaller monthly benefit.
Source: URS Tier 1 Noncontributory and Tier 2 Public Employees Retirement System Highlights, 2026-27, effective July 1, 2026, Tier 1 pp. 14, 18-19, 20; Tier 2 pp. 10-11, 18-19. Also: URS Actuarial Valuation (Jan. 1, 2025); Tier 1 Retirement Guidebook (Sept. 2026); Utah Code §§ 49-11-1001, 49-13-402, 49-22-305. Last reviewed .