Unlike most pension plans, your clergy plan has long provided eligible spouses with an automatic survivor benefit of 50% of the clergy pension benefit, at no cost to you.
Increase your surviving spouse's benefit
At the time you retire, you may choose to increase your surviving spouse's benefit by 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 size of your pension.
- the spousal option you choose.
- your age and that of your spouse.
If you retire on disability, this enhancement is not available until you are age 65. However, if you die before retirement and have at least 30 years of credited service or are 60 or older with at least five years of credited service, the 100% spousal option is assumed.
The enhanced spousal benefit option is not available to clergy retiring on a minimum pension.
Zero Option and actuarial adjustment
The Zero Option provides even greater flexibility for those who are married when they retire, while also providing equitable benefits for those who are not married on retirement. If you choose to provide no benefit to a surviving spouse, your own benefit is increased by an actuarial amount.
If you have enough life insurance or other assets to provide for your surviving spouse, if your spouse has his or her own retirement benefits, or if you believe your spouse is more likely to die first for medical reasons, this option may have advantages for you.
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.)
You may choose either to receive the larger benefit or to reduce it and 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 reduction depends on the amount of survivor benefit you choose.