Options A, B, and C in Summary

Option A: Full benefits (not to exceed 80%). No benefits to a survivor.

Option B: 1% less than Option A. Lump-sum payment to a survivor. No restrictions on the named beneficiary. The beneficiary receives the balance of the annuity savings account which reduces each year and phases out after the sixteenth year.

Option C: 5%-25% less than Option A. Monthly benefit at a reduced level continues for the surviving beneficiary who must be a spouse, parent, child, sibling or former spouse who has not remarried. The pop-up provision, effective after January 12, 1988, restores Option A pension if the beneficiary pre-deceases the retired teacher.

Options A, B, and C in Full

Option A

Of all three options, Option A provides you with the highest possible monthly allowance; it does not, however, provide for any continuing survivor benefits. Upon your death, all Option A retirement payments will stop, and any retirement benefits you earned during the month of your death will be paid to your estate.

Option B

Option B provides you with a monthly allowance that is approximately 1% less than an Option A allowance. This option´s payments are slightly less because Option B does provide for a possible onetime, lump-sum survivor benefit. The Option B survivor benefit is a lump-sum payment of the balance, if any, remaining in your annuity savings account at the time of your death. During your retirement, the balance in your annuity savings account decreases by an amount equal to the annuity portion of your retirement allowance. In most cases, the annuity account will be depleted after 11-12 years. For all intents and purposes, this recordkeeping is "invisible" and the reductions do not affect monthly retirement payments.

Upon your death:

• + All Option B retirement payments will stop,
• + Any retirement benefits you earned during the month of your death will be paid to your estate
• + The balance remaining in your annuity savings account, if any, will be paid in a lump sum to your Option B beneficiary or estate.

If your annuity savings account is depleted while you are receiving an allowance, you will continue to receive the full Option B retirement allowance for life; upon your death, your estate will receive only the amount of the retirement allowance that you were entitled to in the month of your death. Under Option B, you may designate more than one person as your beneficiary and that person or persons need not be related to you.

Option C

Option C provides you with the smallest monthly allowance (approximately 5-25% less than an Option A allowance). It also provides your surviving beneficiary with monthly payments for the rest of his or her life. The calculation of the Option C allowance is based on the life expectancies of both you and your beneficiary at the time of your retirement. Upon your death:

• + All Option C payments will stop, and
• + Your beneficiary will receive a monthly survivor benefit that is equal to two-thirds of the amount of your Option C allowance on the date of your death. Your beneficiary must be your spouse, parent, sibling, child or former spouse who has not remarried.

Option C "Pop-Up"

If you retire under Option C and your beneficiary predeceases you, you cannot name a different "Option C beneficiary." Under the terms of the so-called "pop up" provision, the monthly benefit will "pop up" to a higher amount that is proportional to the amount you would have received under Option A at the time of your retirement. This new, higher amount is then paid to you as of the date of the death of your beneficiary and until your death. In the event that your Option C beneficiary predeceases you, you will need to notify the MTRS. You will be required to complete an Option C Reversion Claim Form, and then recalculate your retirement allowance.*