Return Home

Member Resources

Annuity Options

Upon notice of your retirement, you will be required to choose the option best suited for you and your financial needs. This will be an irrevocable option. It is important that you understand the characteristics of each option so that you can select the one best suited for your particular needs.

Certain selections of options and beneficiary designations other than a surviving spouse may have adverse consequences under the Internal Revenue Code of 1986 which may cause a reduction in the amount of benefits payable. You are urged to consult your attorney or tax advisor prior to a final selection of an option.

When you make your option choice, you will sign a legal statement binding you to the option you have decided upon. Remember: this choice is binding for both you and your survivor/beneficiary, therefore, the importance of certainty cannot be overstated.*

RETIREMENT OPTION SELECTIONS

  1. Life Annuity - Monthly retirement annuity payable only to the member for life with no survivor benefits.
  2. 100% Joint and Survivor Annuity - This is a retirement annuity payable monthly as you live. At your death, your designated survivor surviving beneficiary will receive the same annuity amount.
  3. 50% Joint and Survivor Annuity - This is a retirement annuity payable monthly as long as you live. At your death, your designated survivor surviving beneficiary will receive one-half the annuity amount.
  4. 66-2/3% Joint and Survivor Annuity - This is a retirement annuity payable monthly as long as you live. At your death, your designated survivor surviving beneficiary will receive two-thirds the annuity amount.
  5. Joint and 66-2/3% Last Survivor Annuity - This is a retirement annuity payable monthly as long as you live. At either your death or the death of your designated survivor beneficiary, the last survivor of the two will receive two-thirds of the annuity amount.
  6. Fifteen year Certain and Life Annuity - This is a retirement annuity payable monthly as long as you live. If your death occurs before you have received 180 payments, your designated survivor designated beneficiary or estate will receive the remaining monthly payments. If you are still living after receiving the 180 payments, payments will continue until your death.
  7. Retroactive Deferred Retirement Option Plan (RETRO DROP) - Lump Sum, with Reduced Monthly Benefit. Eligible participants must have at least 23 years of creditable service by March 31, 2015.
  8. Forward Deferred Retirement Option Plan (Forward DROP) - One-time benefit that allows active police officers to defer their annuity benefit payment into a DROP account while still working and before actual retirement. Participants must have at least 23 years of creditable service by February 17, 2016, before enrollment into the Five Year Forward DROP. Participants with at least 23 years of creditable service after February 17, 2016 will only be eligible for the Seven Year Forward DROP.

*On each option document, the following statement will appear. "In selection of this option, I have not relied upon the Police Retirement System for legal advice, including, but not limited to, tax consequences under the Internal Revenue Code of 1986, as amended. I understand that there are legal and tax consequences in the selection of an option and I have been advised to consult my own tax and legal advisors prior to selection of this option."

back to top

site by white lion