When you apply for a service or disability retirement, you must select a benefit option. If you are married, the law requires that your spouse consents — in writing — to the benefit option you choose. This consent must also be witnessed by a notary. If consent is not provided, the law requires an Option 3 benefit be paid with your spouse as beneficiary. The retirement application includes a section for "Spousal Consent Authorization."
This option pays you a benefit for your lifetime. If you die before the benefits you received equal your contributions plus interest at the date of retirement, the balance will be paid in a lump sum to your designated beneficiary.
You receive a reduced benefit. If your designated beneficiary survives you, the benefit amount remains the same and your beneficiary continues to receive it for his or her lifetime.
You receive a reduced benefit, but the reduction is smaller than in Option 2. If your designated beneficiary survives you, 50% of your benefit is paid to your beneficiary for his or her lifetime.
You receive a reduced benefit, but the reduction is smaller than Option 2, and larger than Option 3. If your designated beneficiary survives you, 66.67% of your benefit is paid to your beneficiary for his or her lifetime.
After you retire you can only change your benefit option and designated beneficiary by returning to active membership, except in the following circumstances:
If your monthly benefit will be less than $50, you may choose to be paid a lump sum. To determine the amount, the projected value of your lifetime benefit will be compared with your total contributions plus interest. The larger amount will be paid to you. If you choose a lump sum payment, you are considered retired from LEOFF. This provision usually only applies to members who have a few years of service.