Mortality

Facing retirement, facing mortality.

I'm here to tell you, if you will be drawing a PERS retirement, you will face your own mortality. And whether you are analytical (that's me) or emotional, deciding how to draw your money is almost enough to be paralyzing.

How long do I think I will live? How important is it to me to leave something to the kids if I die early? Should I take part of the money as a annuity for stability, and the other part to have in my own bank -- so it is available for my estate -- and then, how well can I invest and draw on it?)

There are 13 options! I kid you not. Behind the scenes there were many more options that PERS had to calculate before they could show me only the highest value choices. And there's an additional choice which kind of doubles the choice: do I  want to "purchase" my waiting time? What?  Here's the deal:

The simple part, waiting time, refers to the fact the I was not eligible to join the retirement system until I had worked six months for the state. But at retirement I can buy back that waiting time based on what the contributions would have been, about $1,400 in my case (6% of my salary at that early time for my contribution, and whatever the state match was at the time).

The real deal, the real options, are Option 1, Option 2, Option 3, or total lump sum.

But wait, here are the extra variations within each:

Option 1, refund annuity, and option 15C.
Option 2, option 2A
Option 3, option 3A
Lump sum option 1, lump sum option 2, lump sum option 2A, lump sum option 3, lump sum option 3A, or total lump sum.

So did I want the highest amount, but it would completely stop when I die?
Did I want slightly (about 1%) less, so if there was any money left in the "annuity" part of my account it would be paid to my estate?
Should I take less (about 2% from the highest) for "15 Certain," meaning at least 15 years of payments to me or my estate?

Should I take a bunch less with one of the kids as a beneficiary to receive the same payment over their lifetime after I pass?
OR, I could do that with a little less which allows a contingency to recalculate if that kid passes before me?

Should I take an amount that is about 2% less than the highest amount, where a beneficiary receives (for his/her life) half the monthly amount I was getting? [well, that 2% reduction was based on Mike being the beneficiary; I'll bet it would be a bunch less if I named one of the kids]
Or a little less than this half-survivor thing, with an option to recalculate...

This might make more sense if I shared my estimates; sorry, I'm really not comfortable with doing so, but trust me, it was staggering.

Argh. I won't say which one I chose, but I finally said "Heck with it" and submitted my paperwork.