One of the biggest mistakes retirement plans make with a WA DRS pension is forgetting to account for the survivorship reduction. It is an easy number to overlook, but it can shrink your expected monthly income by hundreds of dollars if you do not plan for it ahead of time. Here is exactly what a survivorship option is, how the reduction is calculated, and a full worked example.
What Is a Survivorship Option?
A survivorship option lets your pension continue paying out to your spouse or another loved one after you pass away. When you see your plan’s benefit formula, such as 1% times years worked times your top salary average on Plan 3, that full number represents what is called Option 1, or your full benefit, with no survivor attached.
If you are single when you retire, Option 1 will be your only choice, since there is no spouse to leave a benefit to. If you are married, DRS gives you three additional options, each of which reduces your own monthly pension while you are alive in exchange for continuing some portion of it to your spouse after you pass.
The Four Survivorship Options
| Option | What Your Spouse Receives After You Pass |
|---|---|
| Option 1 | Nothing, no survivor benefit (full pension while you’re alive) |
| Option 2 | 100% of your reduced pension |
| Option 3 | 50% of your reduced pension |
| Option 4 | 66.67% (two-thirds) of your reduced pension |
You do not need to lock in a survivorship option years in advance. This is a decision you make right on your retirement application, at the point you actually retire and start collecting.
Why This Reduction Catches So Many Plans Off Guard
Here is where things go wrong. A lot of people, and even some advisors, plan around the full benefit formula number without factoring in what happens once a survivorship option is selected. If you are on Plan 3 with 30 years of service, you know you would be getting 30% of your average salary under Option 1. But once you elect a survivorship option, that number might really only be 25% or 20%, a meaningful difference for a retirement income plan.
The reduction is calculated using an administrative factor table based entirely on the age difference between you and your spouse. There are actually two separate sheets: one for when your spouse is older than you, and one for when your spouse is younger. On top of that, TRS uses its own sheet, while PERS and SERS each use a different one with their own set of numbers.
If you and your spouse are close in age, just a few months apart, you will use the row at the top of the table representing no age difference. From there, the factor shifts for every year of age difference between you. Generally speaking, the older you are relative to your spouse, the larger the reduction to your own monthly pension, since the state expects to pay your spouse’s survivor benefit for a longer stretch of time.
The logic mirrors how a life insurance company prices a policy: the longer a payout is expected to last, the more it costs to guarantee it. This is also why it is worth pulling both your and your spouse’s exact ages, down to the month, before running any of these numbers. A difference of even one year on the table can shift your administrative factor enough to change your monthly income by a noticeable amount.
A Worked Example
Numbers make this much easier to see in action. Say your full Option 1 pension benefit is $2,000 a month, your spouse is 2 years older than you, and you want to select Option 4, the two-thirds survivor benefit. Looking at the administrative factor table for that age difference and option, the factor works out to 91.2%.
| Calculation | Result |
|---|---|
| $2,000 full pension x 91.2% factor | $1,824 a month while you’re alive |
| $1,824 x 66.67% (Option 4 survivor share) | $1,216 a month to your spouse after you pass |
So instead of the full $2,000 a month you might have been expecting, you would actually receive $1,824 a month for as long as you live. If you pass away first, your spouse would then receive $1,216 a month for the rest of their life. That $176-a-month difference while you are alive is exactly the kind of number that gets missed when a financial plan is built around the full benefit formula instead of the actual survivorship-adjusted amount.
Now compare that to Option 2, the full 100% survivor benefit, using that same $2,000 pension and 2-year age gap. Option 2 carries a bigger reduction to your own monthly income than Option 4, since the state is guaranteeing your spouse the full amount for potentially just as long as you might have lived. Option 3, the 50% survivor benefit, sits on the other end, with a smaller reduction to your own income but a smaller eventual payout to your spouse as well.
Notice the pattern: the more your spouse keeps after you pass away, the more your own monthly pension shrinks while you are both alive. There is no way to shortcut this trade-off. You genuinely have to pull the correct administrative factor table for your specific plan and age difference to know your real numbers for each option.
The Mistake to Avoid: Planning Around the Wrong Number
Here is why this matters so much for retirement planning. Almost nobody retiring with a spouse actually chooses Option 1, the full benefit with no survivor protection. Yet that full benefit number is often the one people use when estimating their future income, simply because it is the number printed on the standard benefit formula.
If your retirement budget assumes a $2,000 monthly pension, but you actually end up receiving $1,824 after electing a survivorship option, that $176-a-month gap adds up fast. Over a 20-year retirement, that is more than $42,000 of income your plan assumed you would have, that you actually will not. Multiply a mistake like that across other income sources, and a retirement plan can end up meaningfully overstating what you will actually receive each month.
The fix is simple in concept, even if it takes a bit of work: always build your retirement income projections around your actual, survivorship-adjusted pension number, not the full formula figure, unless you are certain you will be retiring single or choosing Option 1.
Which Option Do Most People Choose?
In practice, Option 4 is the most common choice, largely because it sits right in the middle between the smaller reduction of Option 3 and the larger reduction of Option 2. Almost nobody retiring with a spouse actually chooses Option 1, since that leaves the surviving spouse with nothing.
That said, popularity is not the same as a personal recommendation. The right option depends on your specific ages, your other retirement income sources, your spouse’s own benefits, and your overall financial plan. Building a retirement income projection that actually reflects your true, survivorship-adjusted pension number, rather than the full formula figure, is one of the most important steps before setting a retirement date.
It also helps to think about what other income your spouse would have if you passed away first. If your spouse has their own pension, Social Security benefit, or substantial retirement savings, a smaller survivor percentage like Option 3 might be perfectly reasonable. If your pension is the primary source of household income, a larger survivor benefit like Option 2 or Option 4 may matter more, even with the bigger reduction to your own monthly check while you are both alive.
Because this decision is permanent once you make your election at retirement, and because it directly affects both your own monthly income and your spouse’s future security, it is worth running the actual numbers with someone who specializes in WA DRS benefits. You can schedule a personal meeting and we will calculate your specific survivorship options together.
Frequently Asked Questions
When do I have to choose my survivorship option?
You elect your survivorship option on your retirement application, at the point you actually retire, not years in advance. You do not need to decide until you are ready to start collecting your pension.
What happens if I am single when I retire?
Option 1, the full benefit with no survivor reduction, will be your only choice, since there is no spouse to leave a continuing benefit to.
Does the survivorship reduction depend on my spouse’s age?
Yes. The administrative factor used to calculate your reduction is based entirely on the age difference between you and your spouse, using a separate table depending on whether your spouse is older or younger than you.
Which survivorship option is the best one to choose?
There is no universal best option. Option 4 is the most commonly chosen in practice, but the right choice depends on your ages, your other income sources, and your overall financial plan.
Do TRS, PERS, and SERS use the same reduction factors?
No. TRS uses its own administrative factor table, while PERS and SERS each use their own separate tables with different numbers. Always check the table for your specific plan.
Can I name someone other than my spouse as my survivor?
The survivorship options are generally built around naming a spouse or another loved one as a beneficiary, though the specific eligibility rules can vary. Check with DRS directly to confirm who qualifies as a survivor beneficiary under your plan.
How much smaller is my pension if I choose a survivorship option?
It depends on which option you choose and the age difference between you and your spouse. Larger survivor benefits and larger age gaps generally mean a bigger reduction to your own monthly pension, which is why pulling your specific administrative factor is essential.
P.S. If you found this breakdown helpful and want more videos like this on WA DRS pension planning, come join a community of over 150 members working through these exact decisions together, with free courses and resources included.
