What is a Deferred Annuity?
If you were a participant of the District of Columbia Teachers’ or the District of Columbia Police and Firefighters’ Retirement plan with at least 5 years of creditable service in the plan and you left the District before meeting the age and service requirements for an immediate retirement benefit, you may be eligible to apply for deferred retirement benefits.
The deferred retirement option allows you to delay receiving your retirement benefits until specific criteria are met. It gives you the opportunity to apply for your pension later in life and potentially increases your overall retirement income. Unlike a 401(k), 401(a) or 457(b) arrangement, a deferred retirement provides a lifetime annuity if you meet the eligibility requirements. Below, you will find important information about deferred annuities under the Teachers' Retirement Plan and the Police Officers and Firefighters' Retirement Plan.
Teachers' Retirement Plan
Who is Eligible for a Deferred Annuity Under the Teacher's Retirement Plan?
If you participated in and contributed to the Teachers’ Retirement Plan for at least five years (60 months) and you leave the DCPS system, you may be eligible to apply for a deferred annuity upon reaching age 62.
In order to be eligible, you must have held a position covered under the Washington Teachers’ Union (WTU) or Council of School Officers (CSO) collective bargaining agreements and contributed to the Teachers’ Retirement Plan for 60 months or five years throughout your career with DCPS. In addition, you may also be eligible to apply for a deferred annuity if you left DCPS to work for a DC Public Charter School and you continued to contribute to the plan.
If you received a refund of your retirement contributions, you will not be eligible to apply for a deferred annuity benefit.
When Will My Benefit Begin?
If you apply for the deferred annuity option, your benefits will begin on the first day of the month following your 62nd birthday. In the event you apply for benefits after reaching age 62, your benefit commencement date will be retroactive to your 62nd birthday.
Is My Spouse Eligible to Receive Benefits?
Yes. If you are married when you apply for your deferred annuity, you have the option of designating a portion of your benefit to your eligible spouse. You are not required to assign a portion of your annuity benefit to your spouse; however, if you select this option, the maximum amount that can be designated to an eligible spouse is 55% or less. You can also elect a survivor annuity for a former spouse or an insurable interest survivor benefit. If you elect to provide a benefit to your eligible survivor, your monthly benefit will be reduced to account for the survivor benefit.
How is My Benefit Calculated?
Your deferred annuity benefit is calculated using the following:
- your total years of eligible service in the Teachers’ Retirement Plan;
- your final average salary at the time you separated from DC Public Schools.
Any accrued and unused sick leave balance at the time of your separation is not creditable for eligibility or computation purposes in a deferred retirement.
Am I Eligible for Health Benefits and Life Insurance Coverage?
Once you leave the school system for reasons other than a voluntary, involuntary, or disability retirement, you are not eligible to carry any health benefits and life insurance coverage you had while employed. However, if you apply for the deferred annuity benefit within 31 days of leaving the school system, you may be eligible to continue health insurance coverage under the provisions of Temporary Continuation of Coverage (TCC). In addition, you may be eligible to convert your life insurance coverage into an individual policy. Contact your human resources department to learn more about continuing your health and life insurance coverages.
How Do I Apply for the Deferred Benefit?
You should submit your deferred annuity application at least 90 days prior to turning 62. To apply for a deferred annuity, you are required to complete the Application for Deferred Retirement Annuity District of Columbia Teachers’ Retirement Plan and return the application along with the following documents:
- A clear copy of your unexpired government-issued identification card. Acceptable forms of identification include:
- State-Issued Driver’s License or State-Issued identification
- US passport
- US passport card
- Electronic Funds Transfer Authorization form along with a voided check;
- W-4P Form Federal Tax Withholding;
- State tax form (only for residents of the District of Columbia, Maryland, or Virginia);
- A copy of your birth certificate that includes the image of the raised seal; and
- A clear copy of your social security card.
Failure to submit the application along with supporting documentation will result in a delay in processing your deferred annuity application.
Your completed application should be mailed to the retirement board at the following address:
District of Columbia Retirement Board
ATTN: Retirement Services Unit
900 7th Street, NW, 2nd Floor
Washington, DC 20001
What Happens to My Benefit If I Die Before My Benefits Begin?
If you are eligible for a deferred retirement annuity and submitted your application but die before you begin receiving your annuity, your eligible survivor (if designated) will receive a survivor benefit from the plan. However, if you did not assign an eligible survivor, then a lump sum payment equal to the amount you contributed to the retirement plan will be distributed to the beneficiary on file with DCRB. If there is no beneficiary designation, then the lump sum payment will be issued to your next of kin based on the order of precedence as follows:
- your children, and if any child does not survive you, the children of your deceased child (your grandchildren);
- your parent(s);
- your estate;
- your next of kin as determined by DCRB under intestate law of the state you lived in at the time of your death.
Police Officers and Firefighters’ Retirement Plan
Who is Eligible for a Deferred Annuity Under the Police and Firefighters’ Retirement Plan?
You are eligible for a deferred retirement benefit if you:
- have at least five years of police officer or firefighter service (excluding periods of suspension)
- did not retire under disability or optional retirement
- did not receive a lump-sum refund of your retirement contributions upon separation, or if you did, you redeposited the amount (with interest) before reaching age 55.
If you leave the Police or Fire Department and are not eligible for an optional or disability retirement benefit but have at least five years of service, you may choose to leave your retirement contributions in the Plan and defer receiving your retirement benefit.
To receive a deferred retirement benefit, you must apply to DCRB. You may begin receiving your deferred retirement benefit on the first day of the month when you turn 55. If you leave at age 55 or older with at least five years of service but are not eligible for an optional or disability retirement benefit, you may start receiving your deferred retirement benefit on the first day of the first month after you leave the Police or Fire Department
If you received a refund of your retirement contributions, you will not be eligible to apply for a deferred annuity benefit.
When Will My Benefit Begin?
If you apply for the deferred annuity option, your benefits will begin on the first day of the month following your 55th birthday. If you leave at age 55 or older and you have at least five years of police officer or firefighter service, but you are not eligible for an optional or disability retirement benefit, you may begin receiving your deferred retirement benefit on the first day of the first month after you leave the Police or Fire Department.
Is My Spouse Eligible to Receive Benefits?
Yes. If you are married when you apply for your deferred annuity, your eligible spouse is automatically eligible to receive a survivor annuity update your death. When you retire under the deferred annuity option, you may elect to reduce the amount of your retirement benefit by 10% to provide an additional survivor benefit to your designated eligible surviving spouse or child.
How is My Benefit Calculated?
Your deferred annuity benefit is calculated using the following:
- your total years of eligible service in the DC Police and Firefighters’ Retirement Plan;
- your final average salary in effect at the time you separated from MPD or FEMS.
Any accrued and unused sick leave balance at the time of your separation is not creditable for eligibility or computation purposes in a deferred retirement.
Am I Eligible for Health Benefits and Life Insurance Coverage?
If you retire under the deferred retirement option and no more than five years have passed since you were actively employed and enrolled in a District health plan, you may be eligible to continue your health insurance coverage under the DC Employees’ Health Benefits (DCEHB) program. If you participated in the Federal Employees Health Benefits (FEHB) plan sponsored by the Office of Personnel Management (OPM) prior to your separation from the District Government, you would not be allowed to continue participating in the plan.
How Do I Apply for the Deferred Benefit?
You should submit your deferred annuity application at least 90 days prior to turning 55. To apply for a deferred annuity, you are required to complete the Application for Deferred Retirement Annuity District of Columbia Police Officers and Firefighters’ Retirement Plan and return the application along with the following documents:
- A clear copy of your unexpired government-issued identification card. Acceptable forms of identification include:
- State-Issued Driver’s License or State-Issued identification
- US passport
- US passport card
- Electronic Funds Transfer Authorization form along with a voided check;
- W4-P Form Federal Tax Withholding;
- State tax form (only for residents of the District of Columbia, Maryland, or Virginia);
- A copy of your birth certificate that includes the image of the raised seal; and
- A clear copy of your social security card.
Failure to submit the application along with supporting documentation will result in a delay in processing your deferred annuity application.
Your completed application should be mailed to the retirement board at the following address:
District of Columbia Retirement Board
ATTN: Retirement Services Unit
900 7th Street, NW, 2nd Floor
Washington, DC 20001
What Happens to My Benefit If I Die Before My Benefits Begin?
If you are eligible for a deferred retirement annuity and submitted your application but die before you begin receiving your annuity, your eligible survivor will receive a survivor benefit from the plan. However, you do not have an eligible survivor, then a lump sum payment equal to the amount you contributed to the retirement plan will be distributed to the beneficiary on file with DCRB. If there is no beneficiary designation, then the lump sum payment will be issued to your next of kin based on the order of precedence as follows:
- your children, and if any child does not survive you, the children of your deceased child (your grandchildren);
- your parent(s);
- your estate;
- your next of kin as determined by DCRB under intestate law of the state you lived in at the time of your death.
Last updated on 10/22/24
