PERS has 14 payment options. Sorting through them can be confusing. Let OregonPERS FYI help clarify.

In a nutshell, PERS payment options come in three basic forms:

A. “Protect My Beneficiary (Even If It Reduces My Monthly Payment)”

This option guarantees you monthly payments until you die, and then provides payment(s) to a surviving beneficiary, such as a spouse. Since this benefit covers you and a beneficiary, the monthly benefit tends to be less than if you were covered alone. There are four types of plans to protect your beneficiary:

i) when you die, your beneficiary continues to receive the same monthly benefit until their death;

ii) when you die, your beneficiary continues to receive 50% of the same monthly benefit until their death;

ii) when you die, your beneficiary receives in a lump sum funds remaining in your account, if any;

iii) if you die prior to receiving 180 monthly payments, your beneficiary receives the remaining 180 monthly payments.

The option you choose depends on how much money you will need when you retire, and how much your beneficiary would need if s/he outlives you.

B. “Maximize My Monthly Benefit Without Protecting My Beneficiary”

This option guarantees you monthly payments until you die. It is NOT designed to provide a beneficiary with guaranteed payments over their lifetime -- when you die, all payments stop, and your beneficiary receives nothing. It tends to result in a higher monthly benefit than options that provide for a beneficiary. It can be a good option for someone without a beneficiary, or someone whose children are already financially secure and self-sufficient, or if you just don’t like you beneficiaries, and want to teach a lesson from beyond the grave.

C. “Let Me Search Outside of PERS for Enhanced Benefits and Greater Protection for My Beneficiary”

PERS will allow you to take some or all of your account and deposit it into an IRA, annuity, or other qualified retirement plan. Such plans may give you a higher monthly benefit than the two PERS plans outlined above. Furthermore, qualified retirement plans such as annuities offer many additional plans to protect your beneficiary.

Now that you have a basic understanding of the three general options, click here to determine the best option for your needs.