If you are a retired member receiving a service retirement allowance under Lump-Sum settlement Option 2A or Option 3A, you may convert to the allowance that you would have received on your effective date of retirement under Option 1, as provided in ORS 238.305(1), if your beneficiary (1) dies or (2) is your spouse and your marriage relationship is terminated, as provided by law.
To make this election, you must notify PERS in writing of your request to convert to an Option 1 benefit. Your letter must clearly state you have an Option 2A or 3A benefit and wish to convert to an Option 1 under one of the circumstances listed above. Along with the letter, include your Social Security number and a copy of the beneficiary’s death certificate or your divorce decree. Your benefit will be recalculated effective the month following the date PERS receives your election notification. Depending on work volume the recalculation timeline may vary. However, you will receive a retroactive payment for all funds due to you as a result of the benefit increase.