Retirement Options

You can select the retirement option that best meets your needs for providing for a spouse, domestic partner or other beneficiary. Some of the options require that your monthly allowance be reduced in order to afford a lifetime monthly continuance to your beneficiary.

You will select a beneficiary when you apply for retirement. This will take the place of any previous beneficiary designation. When you retire, you will choose an option that determines how this beneficiary is paid after your death. This is an important decision, as it can affect the amount of the retirement benefit that you receive.

• Unmodified Option
  This option offers you the maximum retirement benefit available to you.  It is payable for your lifetime.  Upon your death, 60% of your benefit amount will be continued to an eligible spouse, minor child or eligible domestic partner.
  
  
• Option 1 - This option offers you a reduced allowance for your lifetime.  Your beneficiary will receive a lump sum of any remaining contributions in your account.  Under this option, you may change your designated beneficiary at any time.
  
  
• Option 2 - This offers you a reduced allowance for your lifetime.  The reduction depends on your age and the age of the beneficiary that you designate.  You may not change your beneficiary after you retire.  Your beneficiary will receive a continuance for his or her life of 100% of the (reduced) amount that you were receiving.  When your beneficiary dies, payments stop and no further benefits will be paid.
  
  
• Option 3 - This offers you a reduced allowance for your lifetime.  The reduction depends on your age and the age of the beneficiary that you designate.  You may not change your beneficiary after you retire.  Your beneficiary will receive a continuance for his or her life of 50% of the (reduced) amount that you were receiving.  When your beneficiary dies, payments stop and no further benefits will be paid.
  
  
• Option 4 - Under Option 4 you may have multiple designated beneficiaries and may select other survivor payment percentages if approved in advance by the Retirement Board.  SBCERA will request an actuarial study and bring the results and your request before the Board of Retirement before this option is approved.  Be advised that the actuarial study is at the member’s expense. 

You may change your selected option up until the time your first retirement benefit is issued.  After that time, your option selection is irrevocable.  Please be advised that if you make a change and do not allow sufficient time for recalculation of your payments, your first payment may be delayed.

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