Deferred Pension vs Commuted Value

Here's an at-a-glance comparison of these two options:

Deferred pension Commuted value
  1. Your pension is based on your years of credit and average best-five years' salary. It is not based on investment returns or contributions.
  2. Your pension is guaranteed for life and can be increased for inflation.
  3. You can provide a survivor pension to ensure financial security for your loved ones after your death.
  4. If you return to teaching before retirement, your new service and salary information will be included in the calculation of any future benefit.
  1. You assume sole responsibility for investment gains and losses.
  2. Your retirement income must be within the range allowed for a life income fund.
  3. You'll pay transaction fees and expenses to have your money managed or to manage it yourself.

Deferred pension

When you stop teaching, leave your vested pension in the plan and receive a deferred pension in the future. You can collect your pension any time after age 50.