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Overview of Option 1 (Straight Life Annuity) and Options A, B and C:


Estimating Your Retirement Benefits

Under the Arkansas Teacher Retirement System law, you may choose to retire under Option 1 (Straight Life Annuity) or one of the three benefit options: A, B, or C. These options differ in the amount paid and benefits payable to someone else after your death.

Option 1 (Straight Life Annuity)

    Benefit Amounts - Maximum Allowance
    Survivor Benefits - None

Option A

    Benefit Amounts - Reduced Lifetime Annuity
    Survivor Benefits - 100% Survivor Annuity

Option B

    Benefit Amounts - Reduced Lifetime Annuity
    Survivor Benefits - 50% Survivor Annuity

Option C

    Benefit Amounts - Lifetime with 10 years Certain including Pop-Up Provision
    Survivor Benefits - Balance of 120 monthly payments after the Retiree's death


Option 1 (Straight Life Annuity)

Of all three options, Option 1 provides the highest possible monthly benefit payment throughout your lifetime. However, under this option, no monthly benefits will be payable to your beneficiary after your death. Should you die before you have drawn benefits equal to the amount of your contributions plus interest, the difference will be paid in a lump sum to your designated beneficiary.

A retiree receiving a Straight Life Annuity who marries after retirement may elect to cancel this single lifetime benefit to elect Option A or B providing continuous lifetime benefits to his/her spouse. The member must make the election to change the Option selection no later than six (6) months following one (1) full year of marriage.

Option A (100% Survivor Annuity)

Under this option you will receive a reduced benefit payment throughout your lifetime. After your death your designated beneficiary will receive the same payment for the balance of his or her lifetime. Your beneficiary must be one of the following:

  1. Your spouse, married to you at least one year immediately preceding the effective date of benefits;

  2. A dependent child who has been ruled physically or mentally incapacitated by a court of competent jurisdiction.

The death of the designated beneficiary, divorce, or other marriage dissolution following retirement shall, at the written election of the retiree, cancel any option plan elected at retirement to provide continuing lifetime benefits (Option A or B) to such spouse or beneficiary and return the retiree to his/her single lifetime benefit (Option 1).

Option B (50% Survivor Annuity)

Under Option B you will receive a reduced benefit throughout your lifetime. After your death, your designated beneficiary will receive one-half (1/2) of this annuity for the balance of his or her lifetime.

Your designated beneficiary must be one of the following:

  1. Your spouse, married to you not less than one year immediately preceding the effective date of benefits;

  2. A dependent child who has been ruled physically or mentally incapacitated by a court of competent jurisdiction.

The death of the designated beneficiary, divorce, or other marriage dissolution following retirement shall, at the written election of the retiree, cancel any option plan elected at retirement to provide continuing lifetime benefits (Option A or B) to such spouse or beneficiary and return the retiree to his/her single lifetime benefit (Option 1).

Option C (10 Years Certain)

Under Option C, you will receive a reduced benefit throughout your lifetime with the provision that if you die before receiving 120 monthly payments, the remainder of the payments will be paid to your designated beneficiary. When monthly benefits to both the member and beneficiary equals 120 payments, no further benefits are payable to the beneficiary.

If you live to receive 120 payments, your monthly benefit will revert to the amount you would have received under Option 1 (straight life annuity), and continue for life.

"Pop up" Provision

If you select Option A or B, and your beneficiary predeceases you, you can elect your monthly benefit payments to "pop up" to the maximum amount payable under Option 1 for the remainder of your lifetime. Under Option C you can "pop up" or name another beneficiary.


Last Updated ( Wednesday, 21 May 2014 )