The options
Every option starts from the normal form, Option 3(a), which is the amount the benefit formula gives. If you retire early, the normal form already includes the early cut, as in the age-60 column of NPERS's sample below. The calculator shows your normal-form amount.
Option 1: Life Only Annuity
Monthly payment for life with no refund or death benefit; no beneficiary.
School Handbook p. 40, Option 1Option 2: Modified Cash Refund Annuity
Monthly payment for life. If you die before receiving payments equal to your account balance (contributions plus interest) at retirement, the rest is paid in a lump sum to your beneficiaries or estate. Beneficiaries can be changed after retirement.
School Handbook p. 40, Option 2Option 3(a): 5-Year Period Certain and Continuous (normal form)
Monthly payment for life; if you die before 60 payments, the rest go to your beneficiaries or estate.
School Handbook p. 41, Option 3Option 3(b): 10-Year Period Certain and Continuous
Monthly payment for life; 120 payments guaranteed.
School Handbook p. 41, Option 3Option 3(c): 15-Year Period Certain and Continuous
Monthly payment for life; 180 payments guaranteed.
School Handbook p. 41, Option 3Option 4: Joint and Survivor Annuity (spouse only; 50%, 75% or 100%)
Monthly payment for life, then the chosen percentage to your spouse for life. Only your spouse may be named; if your spouse dies first you cannot name another. Not available to an alternate payee.
School Handbook p. 41, Option 4Option 5: Non-Spousal Joint and Survivor Annuity (50%)
Monthly payment for life, then 50% to one non-spouse beneficiary for life. The beneficiary cannot be changed after benefits start. Not available to an alternate payee.
School Handbook p. 42, Option 5The formula amount is the normal form: a life annuity with 60 monthly payments guaranteed (Option 3(a), 5-Year Period Certain and Continuous). Neb. Rev. Stat. §79-934(7)(a); School Handbook p. 43, Sample Benefit Amounts (3(a) 5-Year (Normal Form)) You can't change your option after your effective date. School Handbook pp. 40-42, Retirement: Benefit Payment Options
NPERS's sample amounts
NPERS's handbook shows one member: Tier One, $35,000 salary, a $60,000 account balance, a spouse the same age and a non-spouse beneficiary 20 years younger. School Handbook p. 43, Example: Tier One Calculations
| Option | Age 65 (20 years) | Age 60 (20 years) | Age 55 (30 years) |
|---|---|---|---|
| Option 1: Life Only Annuity | $1,182.99 101.4% | $999.96 100.8% | $1,759.54 100.6% |
| Option 2: Modified Cash Refund Annuity | $1,170.37 100.3% | $992.28 100.1% | $1,757.98 100.5% |
| Option 3(a): 5-Year Period Certain and Continuous | $1,166.67 100% | $991.67 100% | $1,750.00 100% |
| Option 3(b): 10-Year Period Certain and Continuous | $1,132.77 97.1% | $975.46 98.4% | $1,735.09 99.2% |
| Option 3(c): 15-Year Period Certain and Continuous | $1,084.90 93% | $951.38 95.9% | $1,711.78 97.8% |
| Option 4: Joint and Survivor, 50% to your spouse | $1,101.56 94.4% | $943.01 95.1% | $1,678.93 95.9% |
| Option 4: Joint and Survivor, 75% to your spouse | $1,064.91 91.3% | $916.90 92.5% | $1,641.34 93.8% |
| Option 4: Joint and Survivor, 100% to your spouse | $1,030.62 88.3% | $892.20 90% | $1,605.40 91.7% |
| Option 5: Non-Spousal Joint and Survivor Annuity (50%) | $998.40 85.6% | $876.25 88.4% | $1,589.89 90.8% |
Monthly amounts; the small figure is the share of the normal form (Option 3(a)). School Handbook p. 43, Example: Tier One Calculations
NPERS publishes only one sample table (a Tier One member at 55, 60 and 65) and says other tiers differ. Option amounts depend on your and your beneficiary's ages and, for Tiers Three and Four, on tables the board can change.
What we do: We show the 5-year period certain (normal form) amount in dollars and explain the others with NPERS's sample table. We don't estimate them.
What would settle it: NPERS's option factor tables, or a member's retirement packet estimate.How NPERS sets the amounts
- Tiers One and Two: 1994 Group Annuity Mortality Table, 25% male / 75% female blend, 8% interest.
- Tiers Three and Four: Unisex mortality table and interest rate recommended by the actuary and approved by the PERB, in effect on the retirement date.
The statute splits on hire date (before / on or after July 1, 2017), which matches the Tier Two / Tier Three boundary. School Handbook p. 39, Mortality Tables; Neb. Rev. Stat. §79-902(1)(b)-(c)
Each option is the actuarial equivalent of the normal form. Neb. Rev. Stat. §79-938 (optional forms are the actuarial equivalent of the normal form); §79-934(7) What your family gets after you die depends on the option. Survivor benefits
From the sources
- You choose from seven forms: Life Only; Modified Cash Refund (any of your contributions left over go to your beneficiaries); 5-, 10- or 15-year Period Certain and Continuous; Joint and Survivor for your spouse at 50%, 75% or 100%; or a 50% Non-Spousal Joint and Survivor. You get a check for life under every option.School Handbook pp. 40-42
- You cannot change your payment option after your effective date of retirement.School Handbook p. 40 (WARNING)
- The formula gives the 5-year period-certain amount (the normal form). Other options are adjusted from it. In NPERS's Tier One sample at 65, Life Only paid $1,182.99 against $1,166.67, and 100% Joint and Survivor paid $1,030.62. Other tiers differ, so ask NPERS for your own figures.School Handbook p. 43, Sample Benefit Amounts; Neb. Rev. Stat. §79-934(7)
- Tiers One and Two use the 1994 mortality table to set option amounts. Tiers Three and Four use tables the board approves, in effect on your start date.School Handbook p. 39, Mortality Tables
Questions
What is the normal form?
Option 3(a): a check for life with 60 payments guaranteed. It's the amount the formula gives; the other options are adjusted from it.
Which option pays the most each month?
In NPERS's sample, Option 1 (Life Only), because nothing is paid after you die. Joint and survivor options pay the least, because they keep paying your survivor.
Can I change my option later?
No. You can't change it after your effective date of retirement.
Why don't you show dollar amounts for every option?
NPERS doesn't publish the factors. Amounts depend on your age, your beneficiary's age and your tier. NPERS gives your own figures in your retirement packet.
Source: Nebraska School Employees Retirement System Handbook, Revised 07/2026, pp. 39, 40, 40-42, 41, 42, 43, 43-44. Also: Neb. Rev. Stat. §§ 79-902, 79-934, 79-938. Last reviewed .