How does the Contingent (Survivor) benefit work?

Contingent Annuity Option

If a member elects a contingent annuity option, the benefit is reduced to reflect that payments are guaranteed for two lifetimes. The amount of the reduction is based on the member’s age and the age of the member’s contingent beneficiary at retirement.

100% J&S 75% and 50% Contingent Annuity Options

Benefits are guaranteed to the retiree for his/her lifetime. A percentage of the monthly benefit (100%, 75% or 50% depending on the chosen option) will be paid to the surviving contingent beneficiary after the death of the retiree. The contingent beneficiary cannot be changed after retirement.

100% J&S 75% and 50% Contingent Annuity with Pop-Up Options

Benefits are guaranteed for the retiree’s lifetime. A percentage of the monthly benefit (100%, 75% or 50% depending on the chosen option) is paid to the surviving contingent beneficiary after the death of the retiree. However, if the contingent beneficiary dies before the retiree, the retiree’s benefit reverts (pops-up) to the unreduced amount originally calculated, adjusted for cost-of-living adjustments granted since benefits began. The contingent beneficiary cannot be changed after retirement.