FRS Retirement Options 1, 2, 3, 4: What Each Pays Survivors After Death

Every FRS Pension Plan member selects one of four payment options at retirement, and that choice is permanent—it cannot be changed afterward. The option determines how much the retiree receives while alive and what happens to the pension when they die. Survivors who don't know which option was selected are often caught between hope that payments will continue and fear they won't.

Here's what each option actually means for the family left behind.

Option 1: Maximum Benefit, Minimum Survivor Protection

Option 1 pays the highest possible monthly amount during the retiree's lifetime. It's a single-life annuity—when the retiree dies, monthly payments stop completely.

The only survivor benefit is a refund of any remaining employee contributions that haven't been recovered through monthly payments. For long-retired members, that refund is often small or zero because contributions were already recouped over years of pension payments.

Option 1 maximizes income for the retiree but provides no ongoing monthly support for a surviving spouse or dependent. If you discover that your spouse or parent chose Option 1, there is no monthly continuation benefit available.

Option 2: 10-Year Guaranteed Period

Option 2 pays a reduced monthly benefit compared to Option 1, but it guarantees payments for at least 120 months (10 years) from the original retirement date.

If the retiree dies within that 10-year window, the named beneficiary receives the remaining monthly payments until the 120-month period ends. If the retiree lives beyond 10 years, the guarantee is exhausted and no further payments are made to anyone after death.

The critical detail: the 120-month clock starts at the original retirement date, not at the date of death. If the retiree retired 8 years ago and dies today, the beneficiary gets only 24 more months of payments, not a full 10 years.

Option 3: Full Lifetime Continuation

Option 3 pays a reduced monthly benefit during the retiree's lifetime, but when the retiree dies, the named joint annuitant receives 100% of that monthly amount for the rest of their life. The check doesn't shrink and it doesn't expire.

This is the strongest survivor protection in the FRS system. The trade-off is that the monthly benefit during the retiree's life is smaller than Options 1 or 4. That reduction prices in the probability of paying two lifetimes instead of one.

The joint annuitant must meet statutory qualifications: surviving spouse, natural or adopted child under 25 (or disabled), financially dependent parent or grandparent, or legal ward.

Option 4: Joint Life With Reduction

Option 4 pays a higher monthly benefit than Option 3 while both the retiree and joint annuitant are alive. When either person dies first, the surviving person's payment drops to two-thirds (66.67%) of the original amount for the rest of their life.

The same joint annuitant rules apply as Option 3. Option 4 is essentially a compromise—more money now, less protection later.

Note the symmetry: if the joint annuitant dies before the retiree, the retiree's check also drops to two-thirds. This catches some families off guard.

Can the Option Be Changed?

No. Once retirement payments begin or DROP participation starts, the option selection is irrevocable. The member signed Form SA-1 (Spousal Acknowledgement) at retirement if they chose an option other than Option 3, confirming that the spouse understood and consented to the selection.

If you can't find the original retirement paperwork, call the Division of Retirement at 844-377-1888 to confirm which option is on file.

For a full comparison with example calculations and the benefit comparison worksheet, see the Florida FRS Survivor Benefits Guide.

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