Option A
Maximum allowance; all payments stop at your death and no survivor benefit is paid (any amount earned in the month of death goes to your month-of-death designee). Ready for Retirement 2026, p. 18 and p. 34, Overview of retirement Options A, B and C; M.G.L. c. 32, § 12(2)(a)
Option B
Approximately 1-3% less than Option A (more if you are 75 or older: as much as 4-8% or greater). At your death, any balance left in your annuity savings account is paid in a lump sum to your beneficiaries; in most cases the account is used up 9 to 11 years after retirement. Anyone can be named, and you can change beneficiaries during retirement. MTRS's worksheet illustrates Option B at 2% less than Option A. Ready for Retirement 2026, p. 6, p. 18, p. 34, p. 35 (footnote ****); M.G.L. c. 32, § 12(2)(b)
Option C
Generally 9-11% less than Option A. At your death one named beneficiary (your spouse, child, parent, sibling or unmarried former spouse) receives 2/3 of your monthly benefit at the time of death for life. If the beneficiary dies first, your benefit 'pops up' to the Option A amount you would have received at retirement plus COLAs. The beneficiary cannot be changed after retirement. Ready for Retirement 2026, p. 6, p. 18, p. 34; MTRS Beneficiary Designation Form, p. 2; M.G.L. c. 32, § 12(2)(c)
Option B is shown as a range (1% to 3% less than Option A) plus MTRS's 2% illustration.
We show Option B as 1% to 3% less than Option A, plus MTRS's own 2% illustration.
Ready for Retirement 2026, p. 6 and p. 35Among the class of 2026, 60% chose Option A, 12% Option B and 28% Option C. Ready for Retirement 2026, p. 6
MTRS's examples in dollars
Yearly amounts from MTRS's benefit estimate worksheet, each with a $300 veteran's benefit added after the option reduction. Our engine gives the same, within the dollar MTRS rounds to.
| Tier 1 | Tier 2 <30 | Tier 2 30+ | |
|---|---|---|---|
| Option A | $52,300 | $24,660 | $39,833 |
| Option B (at 2% less) | $51,260 | $24,173 | $39,042 |
| Option C | $48,109 | $22,465 | $36,271 |
| Option C survivor (2/3) | $32,073 | $14,977 | $24,180 |
Ages: member 58, 60, 60; beneficiary 57, 59, 59. Option C factors 0.9194, 0.9099, 0.9099. Ready for Retirement 2026, p. 35, Example: Tier 1
How Option C is figured
Option C = Option A × a factor from PERAC's table. The factor depends on your "closer age" and your beneficiary's: each person's age on whichever birthday, before or after your retirement date, is closer to it. Ready for Retirement 2026, p. 8 and p. 36, Determining your and your beneficiary's closer ages; p. 37, Option C factor table (ages 50-72 x 50-75; ages 21-90 on PERAC's site)
MTRS's example: retiring June 30, 2027, your birthday before was November 30, 2026 (7 months earlier, age 61) and the next is November 30, 2027 (5 months later). The later one is closer, so your closer age is 62.
If the retirement date is exactly midway between two birthdays, we use the lower age.
On an exact tie we use the lower age.
Ready for Retirement 2026, p. 36A few Option C factors (member's closer age down the side, beneficiary's across):
| Member | 55 | 60 | 65 |
|---|---|---|---|
| 55 | 0.9346 | 0.9470 | 0.9583 |
| 58 | 0.9133 | 0.9284 | 0.9428 |
| 60 | 0.8963 | 0.9133 | 0.9299 |
| 62 | 0.8769 | 0.8958 | 0.9147 |
| 65 | 0.8436 | 0.8653 | 0.8877 |
After you retire
After retirement, survivor benefits depend on the option chosen: none under Option A (month-of-death amount only), any remaining annuity balance under Option B, or a lifetime 2/3 allowance under Option C. Ready for Retirement 2026, p. 34; MTRS Beneficiary Designation Form, p. 2
- You can't change your option or your retirement date after your retirement date. Among 2026 retirees, 60% chose Option A, 12% Option B and 28% Option C.Ready for Retirement 2026 p. 6 and p. 18
Enter your beneficiary's date of birth in the calculator to see your own Option C amount. More on survivor benefits.
Questions
What are the MTRS payment options?
Option A pays the most and stops at your death. Option B pays about 1%-3% less and refunds what's left of your annuity savings account. Option C pays about 9%-11% less and gives one beneficiary 2/3 of your benefit for life.
Can I change my MTRS option later?
No. You can't change your option after your retirement date.
Source: MTRS Ready for Retirement reference guide, 2026, pp. 6, 8, 18, 34, 35, 36, 36-37, 37. Also: MTRS Beneficiary Designation Form p. 2; PERAC Option C factor table; M.G.L. c. 32, § 12. Last reviewed .