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The maximum amount of Option B coverage in retirement is determined by multiplying your final annual basic pay rate (rounded to the next $1,000) by the number of Option B multiples that were in effect for the five years of service immediately before your retirement or the entire periods of service during which these multiples were available to you, if less than five years. This is the maximum amount of Option B that you can carry into retirement. You can also elect to carry a lower number of Option B multiples into retirement.
The cost of Option B - Additional insurance depends on your age, in five year age brackets and the number of multiples. As a retiree, you pay the same rates for Option B as employees do until you reach age 65. When you have a birthday that moves you to another age group, the change in premiums will be effective at the beginning of the month following your birthday, and will be reflected in the annuity payment that you receive the following month.