PERA Pension's Three Options at Retirement

When you are contributing to PERA and are ready to retire you are able to have three options to choose from.

Option 1:

Option 1 gives you a monthly benefit equal to your three highest average salaries. This benefit is payed to you every month for the rest of your life. Upon your death, a single lumpsum payment will be paid to your beneficiary. The amount will be the remaining balance plus a 100% match of that balance. After your death, no more monthly benefits will be paid.

Option 2:

Option 2 gives you a lifetime monthly benefit from when you retire. Similar to Option 1, this is paid to you every month for the rest of you life. Upon your death, your co-beneficiary will receive a monthly benefit equal to half of the benefit you previously received. Once you co-beneficiary passes, if there is any remaining balance plus a 100% match, those funds will go to your beneficiary. If there is no beneficiary, the funds will go to your co-beneficiaries estate.

Option 3:

Option 3 gives you a lifetime monthly benefit from when you retire. Similar to both Option 1 and Option 2 it is paid to you monthly for the rest of your life. Upon your death, your co-beneficiary a monthly benefit equal to what you received at the time of your death. If there is any balance left after your co-beneficiary passes, your beneficiary is paid the remaining amount plus a 100% match.

Colorado PERA gives you three options at retirement with what you do with your money. It is very important to know which one will fit you best as well as your beneficiaries for when you pass. Talking to an advisor can be a huge help in finding the best option for you and one that fits your life plan!