When you complete your retirement application, you will elect how you wish to receive your benefit from several benefit payout options. Payout options include: the Basic Benefit, the Survivor Option, Basic Benefit with PLOP, Survivor Option with PLOP, and Advanced Pension Option (APO).
Basic Benefit
The Basic Benefit will provide you with the highest monthly benefit in retirement, payable for your lifetime. This payout option does not provide a continuation of your monthly benefit to a survivor. If there is a balance in your member contribution account upon your death, your named beneficiary will be eligible for a lump sum payout of that account balance.
Survivor Option
This payout option allows you to designate a survivor who would continue to receive a monthly benefit upon your death. If you elect this option, the monthly amount you receive in retirement will likely be lower. You will choose a whole percentage from 10 percent to 100 percent, up to the IRS allowed percentage, to be paid to your designated survivor.
The designated survivor can be a spouse or a non-spouse and you may also name more than one survivor. The age of the survivor, your age and the percent of benefit you wish to designate to the survivor(s) will determine your monthly benefit amount.
PLOP with Basic Benefit or Survivor Option
If you work at least one year past the date you first became eligible to retire with full benefits, you are eligible for the PLOP. The Partial Lump Sum Option Payment (PLOP) provides you the option to get a lump sum payment up front at the time of your retirement of one, two or up to three years worth of your basic benefit, depending on how many years you have worked beyond full retirement. Your monthly benefit amount will be reduced.
Advanced Pension Option (APO)
With this option, you elect to temporarily increase your monthly retirement benefit from VRS at retirement until an age you choose, between age 62 and your normal retirement age under Social Security. At the age you select, your VRS retirement benefit permanently reduces. The Advance Pension Option does not provide a continuation of benefit to a survivor.
To determine your benefit amount, VRS will add a percentage of your estimated monthly Social Security benefit to your monthly VRS benefit.
You will need an estimate of your Social Security benefit through the Social Security Administration website if you want to create an estimate of your benefit under the Advanced Pension Option or to elect the option at retirement. The Social Security estimate must be fewer than 12 months old, assume you will have no future earnings after leaving your position, and be based on your Social Security earnings record. This option is intended to provide you level income throughout retirement.
