Choosing to retire is a big decision. Knowing when you are “ready” to retire versus when you “can” retire are often two different decisions. You may be ready to retire, but unsure whether it’s the right time or if you can afford it. Retirement requires careful consideration and planning. Below are some things you should consider when deciding to retire.
This two-minute Quick Tip video explains how to determine if you’re eligible to retire.
Retirement Planning Tables
SBCERA offers several resources to help you estimate your future retirement benefit. For the most personalized estimate, use the Estimate a Benefit feature in your mySBCERA member portal to generate a benefit estimate based on your individual information and service history.
These tables provide a general estimate of your retirement benefit based on your age and years of service. To use the tables, match your target retirement age and corresponding years of service to find your benefit percentage.
These tables are based on your membership classification (Safety or General) and tier (Tier 1 or Tier 2), which affect how your benefit is calculated. Not sure which applies to you? Visit our Members web page to learn more.
Tier 1 Compensation Percentage Tables
Tier 2 Compensation Percentage Tables
Calculating Your SBCERA Benefit
SBCERA offers several resources to assist you in calculating your future benefit. The most useful resource is your mySBCERA account. By accessing your mySBCERA account and creating a benefit estimate, you are able to use data specific to you in calculating your future benefit.
Your lifetime retirement benefit is calculated based on your age at retirement, years of service credit, final average compensation, and benefit formula.
Age at Retirement
Every three months after your birthday, your retirement benefit increases based on your age. Your benefit will continue to increase until you reach the maximum age determined by your benefit formula:
Years of Service Credit
Your years of service credit increase with every hour worked. So as you earn additional service credit each pay period, your retirement benefit also increases.
Final Average Compensation (FAC)
Your FAC is the amount of money you have earned prior to retirement that will be used to determine your retirement benefit.
Tier 1 members: Your FAC comprises your highest 12 consecutive months of earnable compensation at any time during your membership. If you established reciprocity with a reciprocal agency, SBCERA will use the FAC as reported by that reciprocal agency if it is higher. The salary reported by the reciprocal agency may be 12 or 36 consecutive months depending on your membership tier with them.
Tier 2 members: Your FAC comprises the average of your highest 36 consecutive months of pensionable compensation at any time during your membership with SBCERA.
Benefit Formula
Your benefit formula is used to determine how to calculate your benefit based on the other three factors. Ultimately, you will receive a percentage of your final average compensation for every year of service credit you have earned at a particular age.
Example: The formula for Tier 1 General Members is 2% @ age 55. This means a member who retires at age 55 with 25 years of service credit could expect to receive 50% of their final average compensation (2% × 25 years = 50%).
Supplemental Retirement Savings
Your SBCERA benefit is one part of your total retirement income. While it provides a lifetime benefit, you may need supplemental income sources to meet your retirement goals.
Common sources of supplemental retirement savings include:
- Social Security
- Real estate
- Personal savings
- Defined contribution plans (such as a 457(b) or 401(k))
- Investments, including mutual funds, stocks, bonds, and IRAs
To estimate how much income you may need, consider your life in retirement:
- Where will you live?
- What activities will you pursue?
- Do you plan to travel?
Once you have a clear picture of your retirement, you can better estimate your expenses and the income needed to support them.
Retirement Consultation Guide
Retirement requires careful consideration and planning.
This guide is designed to help you clearly understand the retirement process and highlight important information to consider while working towards retirement.
Retirement Consultation Guide 
Retirement Eligibility Requirements
| Tier 1 General Members |
Tier 2 General Members |
- Can retire at any age with at least 30 years of service credit.
- Can retire at age 50 or older with at least 10 years of service credit.
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- Can retire at age 52 or older with at least 5 years of service credit.
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| Tier 1 Safety Members |
Tier 2 Safety Members |
- Can retire at any age with at least 20 years of service credit.
- Can retire at age 50 or older with at least 10 years of service credit.
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- Can retire at age 50 or older with at least 5 years of service credit.
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All active members age 70 or older with any amount of service credit can retire, and all active Tier 1 part-time members can retire at age 55 or older with at least 10 years of membership and 5 years of service credit.
Note: Prior Public Agency Service Credit does not apply toward vesting or retirement eligibility. You will not be credited with service for periods when you are taking a leave without pay or your paycheck is too small to cover your retirement contribution. Visit our Service Credit Purchases page to learn more.
Choosing When to Retire
When choosing what day to retire, waiting a month or two can make a difference in your lifetime monthly benefit amount. Keep the following things in mind when choosing your effective date of retirement to optimize your benefit:
- Age/Birthday: Your retirement benefit increases with each quarter year of age until a maximum age (as mentioned above). Therefore, consider retiring on your birthday, immediately following your birthday, or in a three-month interval after to ensure you receive the latest quarter year of age credit available to you.
- Service Credit: The more service credit you have the greater your benefit will be. You can increase your years of service credit by working longer. You can also purchase service credit, if qualified.
- Spring: The cost-of-living adjustment (COLA) is determined in the spring of each year. By retiring on or before April 1, you will be eligible for a COLA if one has been approved for that year. If you retire after April 1, you will not be eligible for a possible COLA until April 1 of the following year.
You can request a personal benefit estimate from SBCERA for various retirement dates to help understand your retirement options and choose the right time to retire. These estimates include your personal information, anticipated future retirement dates, and projected lifetime monthly benefit. You can request estimates online or by contacting SBCERA.
Deciding to Retire
Deciding to retire is a big step, and we’re here to help guide you through it. Follow these steps to make sure you’re ready when the time comes.
3 Years Prior
2 Years Prior
- Attend a SBCERA Pre-Retirement Seminar
- Generate a retirement benefit estimate in mySBCERA
- Schedule and attend a retirement consultation
- Select your retirement effective date
- Test drive your retirement. Consider living on your projected retirement income for a few months to give it a try
- Research Retiree medical insurance options
60 Days Prior
- Schedule and attend a retirement appointment
- Discuss retirement with your deferred compensation representative
- Generate an updated retirement benefit estimate in mySBCERA
- Complete any outstanding service credit purchase contracts
- Inform your employer of your intent to retire and provide them with your last day working
- Inform reciprocal agencies of your effective date of retirement (if applicable)
- File your application for retirement benefits with SBCERA
- Finalize medical and dental insurance, COBRA, medical trust funds, termination cashouts, life insurance
Retirement
- Congratulations on reaching this significant milestone! Enjoy your retirement.
You can also download SBCERA’s Pre-Retirement Checklist, which includes all these steps in a simple, printable layout.
Your First Benefit Payment
Retirees and beneficiaries are paid once a month on the last business day of the month. You may not receive your first benefit payment for one to two months after retirement. However, your first benefit payment will be prorated based on your effective date of retirement.
