When you apply for retirement, you will be required to
select a beneficiary and a benefit option that you feel best
meets the needs of you and your beneficiary. This beneficiary
will supersede any previous beneficiary designation. The option
selected will determine the death benefits you will provide to
your beneficiary after your death and your benefit amount in
retirement. Some of the options reduce your monthly benefit in
order to provide a lifetime monthly continuance for your
beneficiary. Your options include:
Unmodified Option:
-
Pays you the highest possible
lifetime retirement benefit.
-
60% continuance to
an eligible spouse, registered domestic
partner, or eligible minor
child(ren), or
- If no eligible spouse/domestic partner or eligible child, a
lump sum of any undistributed refundable
contributions in your SBCERA retirement
account.
Notes:
- If more than one child is designated as your beneficiary,
then the benefit will be divided among them.
- You may still elect this option if you do not have an
eligible spouse, registered domestic partner, or minor child. In
this case, any undistributed refundable
contributions in your SBCERA retirement account will be
paid to your named beneficiaries.
Option 1:
-
Reduces your lifetime retirement benefit
based on your life expectancy.
- Any designated
beneficiary or your
estate would receive a lump sum of
any undistributed refundable
contributions in your SBCERA retirement
account.
-
Only option that allows you to change
your beneficiary at any time.
Option 2:
-
Reduces your lifetime retirement benefit
based on your age and age of beneficiary.
-
100% continuance of reduced benefit
amount to your designated beneficiary.
- Designated beneficiary must have an insurable
interest in your life. Cannot be your estate.
- Option is irrevocable. You cannot
change your beneficiary after you retire, even if
they die before you.
- When your designated beneficiary dies, payments stop and no
further benefits will be paid.
Option 3:
-
Reduces your lifetime retirement benefit
based on your age and age of beneficiary.
-
50% continuance of reduced benefit amount
to your designated beneficiary.
- Designated beneficiary must have an insurable
interest in your life. Cannot be your estate.
- Option is irrevocable. You cannot
change your beneficiary after you retire, even if
they die before you.
- When your designated beneficiary dies, payments stop and no
further benefits will be paid.
Option 4:
- Reduces the lifetime retirement benefit for you and/or your
beneficiary.
- Custom continuance to designated beneficiary and/or multiple
beneficiaries.
- Option is irrevocable. You cannot
change your beneficiary after you retire, even if
they die before you.
Note: This option may require an actuarial study
by SBCERA’s actuary to calculate the lifetime benefit amount for
a fee or $200. Please contact SBCERA before choosing this option.
What is a Beneficiary after Retirement?
Eligible Beneficiary
-
Eligible Spouse or Domestic
Partner: Someone you are married to or registered
with for at least one year prior to
your effective date of retirement. Someone can become an
eligible spouse or domestic partner after retirement, if you
are married or registered for at
least two years prior to your death and they
are at least 55 years old at the
time of your death, and you chose the Unmodified Option at the
time of retirement.
-
Eligible Child: For purposes of the
options listed above, an eligible child is a child who is
unmarried under the age of 18, or unmarried and a full-time
student under the age of 22
Designated Beneficiary
-
Somebody with an Insurable Interest: This
is, essentially, any person who would be injured financially by
your death. It is when you have a personal interest in the life
of the other person and you can prove the individual is of
personal value to you such as a spouse, parent, child or
business partner.
-
Your Estate: You can designate your
estate.
Can I Change My Option?
You may change your selected option up until your first
retirement benefit is issued. After that time, your option
selection is irrevocable and cannot be changed. Please be advised
that if you make a change and do not allow sufficient time for
recalculation of your payments, your first benefit may be
delayed.
Choosing My Option
You will not be required to make this choice until you apply
for retirement. However, when planning your retirement it is
important to consider what you and your loved ones will be left
with if one of you dies in retirement. You can calculate what you
and your beneficiary may expect to receive for many of the
options above using our online benefit estimator. Each
estimate will show you what you, the member, would receive and
what your beneficiary, based on their age (if applicable), could
expect to receive upon your death.