What monthly benefit options will I have when I retire?
PERA benefit structure (most PERA members):
Option 1: The largest benefit option. You receive a lifetime monthly benefit and when you die, benefit payments end.
Option 2: You receive a smaller benefit than Option 1, and when you die, your cobeneficiary receives a monthly benefit for the rest of their life that is half of what you were receiving.
Option 3: You receive a smaller benefit than Option 2, and when you die, your cobeneficiary receives the same amount you were receiving for the rest of their life.
Denver Public Schools (DPS) benefit structure (PERA members who were employed by DPS prior to Jan. 1, 2010):
Option A: The largest benefit option. You receive a lifetime monthly benefit and when you die, benefit payments end.
Option B: You receive a smaller benefit than Option A, and your benefit is guaranteed for a set period. If you die before the end of the guarantee period, your Option B beneficiary(ies) will receive your benefit for the remainder of the guarantee period.
Option P2: You receive a smaller benefit than Option A or B, and when you die, your cobeneficiary receives a monthly benefit that is half of what you were receiving for the rest of their life.
Option P3: You receive a smaller benefit than Option P2, and when you die, your cobeneficiary receives the same amount you were receiving for the rest of their life.
Can I change my benefit option later in retirement?
PERA benefit structure: After you retire, you can change your benefit option within 60 days of your first benefit payment. After the 60 days, you can only make changes in certain situations, such as marriage and divorce.
DPS benefit structure: You may change your benefit option any time before your first benefit payment is issued. After your first benefit payment is issued, you cannot change your benefit option except that under Options P2 and P3, you may make changes only in the event of a divorce or death of your cobeneficiary.
If you selected an Option 1 benefit (Option A in the DPS benefit structure), your named beneficiary(ies) will receive a one-time, lump-sum payment of your account balance and any applicable match. If you selected an Option B benefit in the DPS benefit structure, your Option B beneficiary(ies) will begin receiving your monthly benefit for the remainder of your guarantee period. Under other benefit options, your cobeneficiary will begin receiving your monthly benefit.
Beneficiaries and Cobeneficiaries
What’s the difference between a beneficiary and a cobeneficiary?
Your cobeneficiary will be whoever you designate at retirement to continue your monthly benefit if you die. And while it can be any person, it must be only one person and not an entity. The age of your cobeneficiary will determine the reduction to your benefit if you choose a joint-life option at retirement (Options 2 and 3 in the PERA benefit structure, Options P2 and P3 in the DPS benefit structure).
Your named beneficiary(ies) is the person(s) or entity you’ve chosen to receive a lump-sum payment after all monthly benefits have been paid to you and your cobeneficiary.
Can I change my cobeneficiary after I retire?
PERA benefit structure: After you retire, you can change your cobeneficiary within 60 days of your first benefit payment. After the 60 days, you can only make changes in certain situations, such as marriage and divorce.
DPS benefit structure: You may change your cobeneficiary any time before your first benefit payment is issued. After your first benefit payment is issued, you may make changes only in the event of a divorce or death of your cobeneficiary.
What happens if my cobeneficiary dies before I do?
If you select an Option 2 or Option 3 benefit (Option P2 or P3 in the DPS benefit structure) and your cobeneficiary dies before you, your benefit will increase to your Option 1 (Option A) amount.
Does my cobeneficiary continue to get an annual increase and access PERACare after my death?
Yes, and your PERACare premium subsidy transfers to your cobeneficiary as well (PERA benefit structure only).
