- At retirement you choose one of three options, and you cannot change it later. Option A (Straight Life) pays the full amount for your life. Option B pays a reduced amount, and 100% of it continues to your beneficiary for life. Option C pays a reduced amount, and 50% of it continues to your beneficiary for life.Member Handbook 2025, p. 18, Benefit Options
- Under Option B or C, if your beneficiary dies first, your benefit goes up to the Option A amount. A beneficiary who is not your spouse can be no more than ten years younger than you. You can name only one beneficiary: a person or a supplemental needs trust.Member Handbook 2025, p. 18
- NMERB does not publish the reduction factors for Options B and C; they depend on your age and your beneficiary's age. Ask NMERB for an estimate of each option.Member Handbook 2025, pp. 18-19
- A retiree on Option B or C with a living beneficiary can, one time only, drop that beneficiary and name a new one or switch to Option A. A spouse must give notarized consent. The fee is $100.Member Handbook 2025, p. 19, Changing Beneficiaries
The three options
- Option A: Straight Life Benefit: Full formula amount for life; no monthly survivor benefit. If your contributions have not been fully paid out at death, the balance goes to your beneficiary or estate (contributions are generally exhausted within three to five years). Member Handbook 2025, p. 18, Option A
- Option B: Joint 100% Survivor Benefit: Reduced benefit; the same amount continues for the beneficiary's life. Based on both ages at retirement. A non-spouse beneficiary cannot be more than ten years younger than you. If the beneficiary dies first, your benefit pops up to the Option A amount. Member Handbook 2025, p. 18, Option B
- Option C: Joint 50% Survivor Benefit: Reduced benefit; half continues for the beneficiary's life. If the beneficiary dies first, your benefit pops up to the Option A amount. Member Handbook 2025, p. 18, Option C
Options B and C allow only one beneficiary: a person or (from June 16, 2023) a supplemental needs trust. Member Handbook 2025, p. 18
In dollars
Option A is the formula amount, after any early cut, so we can show it. Options B and C need NMERB's factors, which it doesn't publish. On a $60,000 final average salary (our illustration), with no early cut:
| Example | Option A | B (100%) | C (50%) |
|---|---|---|---|
| Tiers 1-3, 30 years30 × 2.35% = 70.5% | $3,525 | —Check with NMERB | —Check with NMERB |
| Tier 4, 15 years25.25%, the handbook's example | $1,263 | —Check with NMERB | —Check with NMERB |
| Tier 4, 32 years75.3%, the handbook's example | $3,765 | —Check with NMERB | —Check with NMERB |
Monthly. Member Handbook 2025, pp. 18-19, Benefit Options; NMSA 1978, §22-11-29(A)-(B)
Options B and C pay less than Option A, by an amount that depends on your age and your beneficiary's age. NMERB doesn't publish those factors, so we show only Option A in dollars.
What would settle it: NMERB option factor tables, or official estimates for a few age pairs.
After you retire
Retirees under Option B or C with a living beneficiary have a one-time irrevocable choice to deselect the beneficiary and name a new one or go to Option A. A spouse beneficiary must give notarized written consent; a former spouse is subject to court order. $100 processing fee. Member Handbook 2025, p. 19, Changing Beneficiaries; NMSA 1978, §22-11-29(D)-(E); HB 251 (2025)
Option A: the balance of unpaid contributions goes to the beneficiary or estate. Options B/C: the survivor's monthly benefit continues. Benefits are paid through the month of death. Survivors of retirees may also qualify for a one-time lump-sum death benefit based on years of service (amount not published in these sources). Member Handbook 2025, p. 10, Refunds and Rollovers; p. 18, Option A; NMERB web page Death of a Member / Beneficiary
NMERB's death page mentions a one-time lump sum for survivors of retirees, based on years of service, but gives no amount. It may be NMRHCA life insurance rather than an NMERB benefit.
What would settle it: NMERB or NMRHCA schedule of the retiree death benefit.
See survivor benefits for a death before retirement, or get your own Option A amount from the calculator.
Questions
Which NMERB option pays the most?
Option A: Straight Life Benefit. Full formula amount for life; no monthly survivor benefit. If your contributions have not been fully paid out at death, the balance goes to your beneficiary or estate (contributions are generally exhausted within three to five years).
How much less do Options B and C pay?
Options B and C are actuarial equivalents based on both ages; NMERB does not publish option factors. Ask NMERB for estimates of each option.
Can I change my option after I retire?
No, the choice is final. Retirees under Option B or C with a living beneficiary have a one-time irrevocable choice to deselect the beneficiary and name a new one or go to Option A. A spouse beneficiary must give notarized written consent; a former spouse is subject to court order. $100 processing fee.
Source: NMERB Member Handbook, 2025 edition, pp. 6, 10, 16, 18-19, 18, 19. Also: NMERB web page 'Death of a Member / Beneficiary'; HB 251 (2025); NMSA 1978 § 22-11-29. Last reviewed .