FPPA defined benefit plan Members face many important decisions when applying for retirement. Among the most important of these is selecting a payment option, i.e. whether to continue their benefit payments to a beneficiary after they die—and if so, how much of their benefit to pass along.
Effective today, new retirees in the Statewide Retirement Plan* may select from two additional payment options when completing the retirement process. The goal of these new options is to provide additional flexibility, allowing each Member to make the best financial decision for their family.
As we’ve previously detailed, the new 75% benefit choices are variations on existing payment options:
- Survivor Options: These options allow Members to cover a beneficiary after they pass away. To do this, benefits are reduced on an actuarially equivalent basis. Available options are 100% Survivor (beneficiary receives the same benefit after the Member’s death), 75% Survivor (beneficiary gets 75% of the benefit), and 50% Survivor (beneficiary gets 50% of the benefit)
- Survivor Options + Pop-Up: These are mostly the same as the survivor options described above, but if the beneficiary dies first, the Member’s benefit increases to the Single-Life Benefit option. Like the above, this now comes in 100%, 75%, and 50% options
Selecting the New 75% Payment Options
The new payment options are now available in the benefit calculator and retirement application within the Member Account Portal. For questions, contact FPPA’s Benefits department at (303) 770-3772, ext. 6400 or generalbenefits@fppaco.org.
*This change only affects non-retired Members of the Statewide Retirement Plan. Current retirees or Members of other FPPA plans are not eligible.