Educate Yourself

Retirement Plans Offered

PLAN B

Survivor/Beneficiary Options

Your Plan B monthly benefit is less than the benefit you would receive under Plan A.  However, Plan B provides a monthly benefit to you, and at your death, a lump-sum payment or monthly benefit is available to your beneficiary(ies). Under Plan B, the amount of reduction of your monthly benefit depends on your age at retirement and the age(s) of your beneficiary(ies).  You decide the type of benefit to leave to your beneficiary(ies) by choosing one of the six options offered by Plan B. 

Option 1
You accept a small reduction from the maximum benefit in order to provide your estate or beneficiary(ies) a lump sum refund at your death. The refund is the remaining portion of your account contributions and interest that were not consumed by the monthly payment(s) you received prior to your death. In most cases, your contributions and interest will be depleted within 10 to 14 years after retirement. Therefore, while your monthly benefit will continue throughout your life, after 10 to 14 years, most likely there will be no funds remaining in your account to distribute to your estate or beneficiary(ies).

Option 2
This option offers you a reduced monthly lifetime benefit based on your age and the age of your beneficiary. Option 2 guarantees that at your death, your beneficiary, if living, will receive for life the same monthly benefit you were receiving.  You may designate multiple beneficiaries to receive lifetime monthly benefits and specify the percentage of benefits to be paid to each beneficiary.  If you select two or more beneficiaries, and one beneficiary predeceases you, the percentage of available benefits you selected for the remaining beneficiary will not be adjusted.  Should your beneficiary(ies) predecease you, your monthly benefit will remain under Option 2 unless you elect to change your plan of retirement and/or beneficiary as provided by Georgia law.

Option 2 Pop-Up
Same benefit as Option 2; except, for an additional nominal reduction in the Option 2 monthly benefit, should your beneficiary die prior to your death, your benefit will be increased to the amount you would have received if you had retired under the Maximum Plan. Under this option, you can designate only one beneficiary.

Option 3
This option offers you a reduced monthly lifetime benefit based on your age and the age of your beneficiary(ies). Option 3 guarantees that at your death, your named beneficiary(ies), if living, will receive for life one-half the monthly benefit you were receiving. Beneficiaries will receive one-half cost-of-living increases.

Option 3 Pop-Up
Same benefit as Option 3; except, for an additional nominal reduction in the Option 3 monthly benefit, should your beneficiary die prior to your death, your benefit will be increased to the amount you would have received if you had retired under the Maximum Plan. Under this option, you can designate only one beneficiary.

Option 4
This Option offers a reduced monthly lifetime benefit in exchange for the flexibility to designate a specific dollar amount or a specific percentage of your monthly benefit to be paid to your beneficiary(ies) after your death. The beneficiary benefits you specify under this plan cannot cause your monthly benefit to be reduced below 50% of the maximum benefit available to  you. If multiple beneficiaries predecease you, the dollar amounts for the percentages are not adjusted. Beneficiaries also receive a prorated share of any cost-of-living increases you received up to the date of death.

If select an optional plan of retirement and die within 30 days of the effective date of retirement, your optional selection will be voided and settlement of your account will be as though you died while in active service.  The settlement will be in accordance with most recent beneficiary form on file with TRS.