When you retire under a defined benefit pension plan in 2026, you must decide how your benefit will be paid after you pass away. Choosing a survivor option typically reduces your own monthly check in exchange for providing a continued income for your beneficiary.

Standard Joint and Survivor Annuity (QJSA)

Federal law requires that the default payout for a married participant be a Qualified Joint and Survivor Annuity (QJSA) unless the spouse signs a written waiver.

  • The Payout: You receive a monthly check for life. When you die, your surviving spouse receives a percentage of that check (usually 50%, 75%, or 100%) for the rest of their life.
  • The Cost: Your monthly benefit is reduced to cover the cost of the two-life guarantee. For example, if your “Single Life” benefit is $2,000, a “100% Joint and Survivor” option might pay $1,700 to ensure your spouse gets that same $1,700 forever.
  • The “Pop-Up” Provision: Some 2026 plans offer a “Pop-Up” option. If your beneficiary dies before you, your monthly benefit “pops up” to the higher Single Life amount for the remainder of your life.

Period-Certain Options

This option guarantees that payments will be made for a minimum number of years, even if both you and your survivor pass away.

  • Common Terms: 5, 10, or 15 years.
  • How it Works: If you choose a “10-year certain” and die in year 4, your beneficiary receives the checks for the remaining 6 years. If you live for 20 years, you receive your checks for life, but nothing is paid to a beneficiary after you die.
  • Flexibility: Unlike a Joint and Survivor annuity, you can often change the beneficiary of a period-certain option at any time.

Qualified Preretirement Survivor Annuity (QPSA)

This is a critical protection for employees who are vested but have not yet retired.

  • Automatic Protection: If you are vested and die before you officially retire, the plan must pay a survivor benefit to your spouse.
  • Benefit Amount: This is usually calculated as if you had retired the day before you died and elected a 50% Joint and Survivor option.
  • Spousal Waiver: You can generally only name someone other than your spouse for this protection if your spouse provides notarized consent.

Beneficiary Restrictions in 2026

  • Non-Spouse Beneficiaries: While you can often name a child or a domestic partner as a survivor, the IRS “Incidental Benefit” rule may limit how much they can receive if they are significantly younger than you (to ensure the pension is used for retirement, not primarily as an inheritance).
  • QDROs: If you are divorced, a Qualified Domestic Relations Order (QDRO) may legally require that a portion of your survivor benefit be paid to a former spouse, regardless of your current marital status.
  • Consent Requirements: If you are married and want to choose a “Single Life” annuity (which pays the maximum amount but leaves $0 to your spouse), your spouse must sign a waiver in the presence of a notary or plan representative.

Source: Pension Benefit Guaranty Corporation (PBGC), “Benefit Options” (Jan 2026); and Internal Revenue Service (IRS), “Retirement Topics — Qualified Joint and Survivor Annuity.”