Six plan choices
TRA offers six retirement plans that provide a monthly annuity payable for your lifetime. The plan you choose determines your monthly benefit amount and the level of protection provided to your beneficiaries or survivors.
Key considerations:
- Changing plans: You have two months following your initial payment date to change your plan selection and annuity options.
- Spousal consent: Married members are required to select a survivorship plan (50%, 75%, or 100%) with their spouse as the named survivor. To choose a different plan or survivor, your spouse must sign a notarized waiver on your retirement application.
- Spousal estimates: TRA is required to provide your spouse with benefit estimates to ensure the spouse is aware of the financial implications of your selections.
Limited beneficiary plan
These plans provide the highest monthly payments to you because they offer limited protection for beneficiaries. You may designate any individuals, trusts, organizations, or your estate as beneficiaries.
This plan provides the highest possible monthly benefit for your lifetime.
- Payments: Lifetime for you.
- Beneficiary protection:
- If you die within two months of your first payment, your beneficiary receives a lump sum equal to your contributions and interest, minus any benefits already paid.
- If you die after two months, no further beneficiary payments are made (other than any uncashed payment for the month of death).
This plan provides a lifetime benefit with a guarantee that your total contributions to TRA plus interest will be paid out.
- Payments: Lifetime for you.
- Beneficiary protection: If you die before your total monthly payments equal your accumulated contributions plus interest, your beneficiary receives the same monthly payment until your remaining balance is exhausted (typically covers 2–6 years of retirement).
This plan provides a lifetime benefit with a 15-year (180 payment) guarantee.
- Payments: Lifetime for you.
- Beneficiary protection: If you die before 15 years have passed, your beneficiary receives the same monthly payment for the remainder of the 180-month period. If you live past 15 years, you will continue to receive your payments but nothing will be paid to a beneficiary after your death.
Survivorship plans (50%, 75%, or 100%)
These plans provide a reduced monthly benefit to you in exchange for providing a lifetime monthly benefit to a survivor after you die. Upon your death, your survivor receives a lifetime benefit equal to the percentage you selected.
For all three survivorship plans —
- Payments: Lifetime for you.
- Beneficiary protection: Lifetime for your survivor.
- Example: A member receives monthly benefit payments of $1,000. Upon the member’s death, the lifetime benefit payment amount for their survivor would be:
- $500 with the 50% survivorship plan,
- $750 with the 75% survivorship plan, or
- $1,000 with the 100% survivorship plan.
- Example: A member receives monthly benefit payments of $1,000. Upon the member’s death, the lifetime benefit payment amount for their survivor would be:
- The bounce-back feature: All three survivorship plans include a “bounce-back” feature. If your named survivor dies before you, your monthly payment will “bounce back” (increase) to the higher No Refund plan amount for the rest of your life.
- Naming multiple survivors: You may name more than one survivor. If one dies, you will receive a “partial bounce-back” for their portion; their benefit is not redistributed to the remaining survivor(s).
- Non-spousal survivors: If you name someone other than a spouse as a survivor who is significantly younger than you, IRS regulations may limit your ability to choose the 75% or 100% options. Contact TRA to determine your specific plan options.
Divorce: If you divorce after retirement, a spousal survivorship designation may only be revoked if specifically ordered by the court. A survivorship designation may be rescinded upon mutual agreement between you and your non-spousal survivor. Visit the divorce webpage for details.
Accelerated annuity
An accelerated annuity allows you to receive a larger monthly payment in the early years of retirement, followed by a reduced monthly amount for the remainder of your life. This is often used to provide higher income before you qualify for Social Security or other investment payouts begin.
At retirement, you can choose to accelerate your benefit to age 62, 65, or your Social Security full retirement age. You receive a higher “front-loaded” payment until that date; once you reach your target age, your payment drops to a lower, permanent lifetime amount.
The more you “accelerate” (take upfront), the smaller your remaining lifetime annuity will be. You may choose the maximum acceleration amount, or any lesser amount between your regular monthly amount and the maximum. If you choose a lesser amount, the amount of your remaining lifetime annuity will be higher.
A member eligible for a nonaccelerated $1,000 monthly “No Refund” benefit at age 58 who elects to accelerate to age 62 might receive $1,543 per month until age 62, and then $800 per month for the rest of their life (plus any applicable postretirement increases).
If you die before reaching the target acceleration age, the temporary accelerated portion of your benefit is guaranteed and continues to be paid to your designated beneficiary until the date you would have reached that age.
- Whether the lifetime portion of the annuity continues after your death depends on the retirement plan option you selected at retirement.
You have two months following your initial payment date to cancel or change your election for an accelerated annuity. After this window closes, the choice is irrevocable.
