In addition to the "A" series benefit options, APERS offers two other options that allow members to extend their retirement benefits beyond their lifetime to a beneficiary: options B-75 and B-50. This article describes the "B" options.

What is a "B" Option?

The "B" benefit options have three distinguishing features.

  1. "B" option benefits are calculated as a percentage of the retiree's straight life rate with a further adjustment for the age of the beneficiary. The benefit amount is increased if the beneficiary is older and decreased if the beneficiary is younger.
  2. The "B" option beneficiary must be either a spouse to whom the retiree has been married for at least six months or a person 40 years of age or older for whom the retiree has contributed at least 50% support.
  3. In the event of the retiree's death, a percentage of the retiree's monthly annuity will be paid to the beneficiary for his or her lifetime.

Option B-75

If you retire under option B-75, you receive a monthly annuity payable to you for life and calculated as follows: 83% of your straight-life rate adjusted by plus or minus 7/10 of 1% (0.7%) for each year difference in age between you and your beneficiary. In the event of your death, your beneficiary will receive a lifetime annuity that is 75% of the annuity you received.clipboard3

Option B-50

If you retire under option B-50, you receive a monthly annuity payable to you for life and calculated as follows: 88% of your straight-life rate adjusted by plus or minus 1/2 of 1% (0.5%) for each year difference in age between you and your beneficiary. In the event of your death, your beneficiary will receive a lifetime annuity that is 50% of the annuity you received.

Changes in Marital Status and the "B" Options

If you elect one of the "B" options but later become umarried through divorce or the death of a spouse during retirement, you may elect one of the other benefit options.

For more information about your retirement benefit options, download the Retirement Benefit Options brochure (PDF) on the Publications page. 

Also in this blog series: Straight Life and the "A" Options.

Arkansas public employees retirement system

Here you will find information based on your role in our system, whether you are an active member, near retirement, a retired member or an APERS particpating employer.