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