The four options
| Option | What it does |
|---|---|
| Straight Life Annuity (Option 1) the most a month | Highest lifetime benefit; payments stop at death; any remaining contributions (residue) go to the residue beneficiary. |
| Option A (100% survivor) about 18% less than straight life Check with ATRS | Reduced benefit for life (approximately 18% less than the SLA); 100% of it continues to the beneficiary for life. Beneficiary: Spouse (married at least 1 year before the first payment), court-adjudged incapacitated child, or both |
| Option B (50% survivor) about 10% less than straight life Check with ATRS | Reduced benefit for life (approximately 10% less than the SLA); half of it continues to the beneficiary for life. Beneficiary: Spouse (married at least 1 year), court-adjudged incapacitated child, or both |
| Option C (10 years certain) about 4% less than straight life Check with ATRS | Reduced benefit (approximately 4% less) guaranteed for 120 payments; after 120 payments it pops up to the SLA amount for life. If the retiree dies first, the rest of the 120 payments go to the beneficiary. Beneficiary: Any person, entity or trust |
Member Handbook p. 24, What is a straight life annuity?; 24 CAR § 10-613(a)(1); Member Handbook pp. 24-25, What is an Option A annuity?; 2026 Retirement Planner p. 7; 24 CAR § 10-613(a)(2)(B)(i), (b); Member Handbook p. 25, What is an Option B annuity?; 2026 Retirement Planner p. 7; 24 CAR § 10-613(a)(2)(B)(ii); Member Handbook p. 25, What is an Option C annuity?; 2026 Retirement Planner p. 7; 24 CAR § 10-613(a)(2)(B)(iii)
ATRS publishes no option factors, only approximate reductions (A about 18%, B about 10%, C about 4%) and one actuarial example (Option A, member 60 / spouse 55: 0.78571). Our calculator shows approximate amounts only, clearly labelled.
What would settle it: ATRS's option factor table or a Member Portal benefit estimate with all four options.What that looks like
Our example: 28 years, a $55,000 final average salary, full benefit. Straight life is $2,759.17 plus the $50 stipend. The options use ATRS's "about" percentages, so they are only rough guides.
| Option | A month |
|---|---|
| Straight Life Annuity (Option 1) | $2,809.17 |
| Option A (100% survivor) Check with ATRS | about $2,313 |
| Option B (50% survivor) Check with ATRS | about $2,533 |
| Option C (10 years certain) Check with ATRS | about $2,699 |
The $50 stipend is added after the option cut; it isn't reduced. Actuarial valuation 2025 p. C-6, item 14 (Resolution 2017-34: stipend removed from the base amount from FY 2019, $50 from FY 2020, with a hold-harmless for retirees); p. C-11 sample (option adjustment applied to the benefit before the $600 stipend; yearly increase $536 = 3% of the option annuity only)
After you choose
- An option can be changed once within 1 year of the effective retirement date (repayment may be due). Member Handbook p. 25, Can I change the annuity option I chose after I retire?; 2026 Retirement Planner p. 3
- If all option beneficiaries die (or after a divorce, per the options rules), the benefit can pop up to the straight life amount. Member Handbook p. 33, What happens if all of my designated option beneficiaries die before me?; Actuarial valuation 2025 p. C-7, Pop-Up Election
- If married less than 1 year at retirement, the member must take the SLA and may switch to Option A or B within 6 months after reaching 1 year of marriage. Member Handbook p. 31; 24 CAR § 10-613(d)
From the sources
- You choose one of four options when you retire. The Straight Life Annuity pays the most and stops at death. Option A is about 18% less and pays 100% to your beneficiary for life. Option B is about 10% less and pays 50%. Option C is about 4% less and guarantees 120 payments, then rises to the full amount.Member Handbook pp. 24-25; 2026 Retirement Planner p. 7
- An Option A or B beneficiary must be your spouse (married at least 1 year when payments start), a court-adjudged incapacitated child, or both. Option C can name anyone, including a trust.Member Handbook pp. 29, 31; 24 CAR § 10-613(b)
- You can change your option once within one year of retiring, possibly repaying some benefits. If your option beneficiary dies first, you can 'pop up' to the Straight Life amount.Member Handbook pp. 25, 33
- Check with ATRSATRS doesn't publish its option factors. Amounts depend on your and your beneficiary's ages; ask ATRS or use the Member Portal estimator.Member Handbook pp. 24-26; Actuarial valuation 2025 p. C-7
Questions
Which ATRS option pays the most?
The Straight Life Annuity. It pays the highest monthly amount for your lifetime and stops when you die.
How much less are Options A, B and C?
ATRS says about 18%, 10% and 4% less than straight life. Those are approximations: your real amount depends on your age and your beneficiary's age. ATRS doesn't publish its factors.
Who can I name for Option A or B?
Your spouse (married at least 1 year before your first payment), a court-adjudged incapacitated child, or both. Option C can name anyone, including a trust.
Can I change my option later?
An option can be changed once within 1 year of the effective retirement date (repayment may be due).
Source: ATRS Member Handbook, 2026-2027 school year (current as of July 2026), pp. 24, 24-25, 24-26, 25, 29, 31, 33. Also: 2026 Retirement Planner pp. 3, 7; Actuarial valuation 2025 pp. C-6, C-7, C-11; ATRS rules, 24 CAR § 10-613. Last reviewed .