Unlike most pension plans, your clergy plan has long provided eligible spouses with an automatic survivor benefit equal to 50% of the clergy pension benefit at no cost to you.
Option to increase a surviving spouse's benefit
If you were married when you retired, you had the choice to enhance your surviving spouse's benefit by increasing it to 60%, 75%, 85%, or 100% of your pension benefit by reducing the benefit you receive while you are living, usually by a small amount. This is a one-time opportunity offered at the time of retirement only and, once chosen, is irrevocable.
The amount your benefit is reduced depends on:
- the amount of your pension
- the spousal option you choose
- your age and that of your spouse
The older your spouse is at the time you retire, the less your own benefit is reduced.
If you retired on disability, this election is available when you reach age 65.
Zero Option and actuarial adjustment
If you chose to provide no benefit to a surviving spouse, your own benefit is increased by an actuarial amount.
Single clergy and second adult beneficiary
If you are not married when you retire, your pension benefits are automatically calculated with the Zero Option upward adjustment. (Because no 50% spouse's benefit is automatically payable, the actuarial value of that benefit is used to enhance your benefit.)
At the time of retirement, you can choose either to receive the larger benefit or to establish a survivor benefit for a second adult beneficiary. The survivor benefit can be as little as 25%, or as much as 100% of your adjusted benefit. The amount of adjustment depends on the amount of survivor benefit you chose and your respective ages.