Montana Public Employees' Retirement System Handbook 1998 May
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The factor is based on the age difference between you and your contingent annuitant. See table HI on page 39 for a list of Option 2 faaors. The larger the difference the smaller the factor, and the smaller your benefit. For example, your benefit will be much smaller if the age difference is 20 years rather than 1 or 2 years. If the contingent annuitant passes away first, the benefit ends when the member passes away. However, in some case you may choose a new contingent annuitant or option if th...e original contingent annuitant passes away. 20 Option 3 is very similar to Option 2. Option 3 is also an annuity based on the lives of two people. Initially, the member receives the benefit for life, then one half the benefit continues to the contingent annuitant for life. Because the contingent annuitant receives half the member's benefit, the benefit is larger than the Option 2 benefit. Computing the Option 3 benefit is similar to Option 2, but you use Option 3 factors. See table HI on page 39 for a list of Option 3 factors.
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