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If you retire on or after April 1, 1996 and are married, you can elect a 100% Husband-and-Wife Option. This form provides a reduced monthly benefit for you so that, upon your death, your spouse will receive 100% of the benefit that you were receiving for the rest of his or her life. Your monthly benefit will be actuarially reduced taking into consideration the difference in your age and your spouse’s age. For most retiring participants, the reduction factor is calculated by starting with 81% and adding 0.7% for each year that your spouse is older than you or subtracting 0.7% for each year that your spouse is younger than you. (For participants retiring on a Disability Pension, the reduction factor is calculated by starting with 67.0% and adding 0.5% for each year that your spouse is older than you or subtracting 0.5% for each year that your spouse is younger than you.)
For example, you retire at age 62, are eligible for a Regular Pension of $1,500.00, and you and your spouse elect the 100% Husband-and-Wife Option. Your spouse’s age is 57. The reduction factor would be 77.5% based on a spouse who is five years younger. Therefore the 100% Husband-and-Wife Option would be $1,162.50 ($1,500.00 x 0.775 = $1,162.50). This amount is payable to you for your lifetime. If your spouse is living at the time of your death, he or she will receive a monthly benefit of $1,162.50 for the remainder of her lifetime.
The actuarial reduction factors are shown on the following table for participants with a spouse from one to ten years younger or older.
| Spouse's Age Compared with Participant's Age |
Actuarial Factor for
100% Husband-and-Wife Option |
| |
Non-Disability |
Disability |
| 10 years younger |
88.0% |
72.0% |
| 9 |
87.3% |
71.5% |
| 8 |
86.6% |
71.0% |
| 7 |
85.9% |
70.5% |
| 6 |
85.2% |
70.0% |
| 5 |
84.5% |
69.5% |
| 4 |
83.8% |
69.0% |
| 3 |
83.1% |
68.5% |
| 2 |
82.4% |
68.0% |
| 1 year younger |
81.7% |
67.5% |
| Same age |
81.0% |
67.0% |
| 1 year older |
80.3% |
66.5% |
| 2 |
79.6% |
66.0% |
| 3 |
78.9% |
65.5% |
| 4 |
78.2% |
65.0% |
| 5 |
77.5% |
64.5% |
| 6 |
76.8% |
64.0% |
| 7 |
76.1% |
63.5% |
| 8 |
75.4% |
63.0% |
| 9 |
74.7% |
62.5% |
| 10 years older |
74.0% |
62.0% |