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Benefit Payment Options Before ACERA processes a retiree's check, he or she must elect one of the available benefit payment options. Once ACERA receives the signed contract indicating the benefit election, and payment has commenced, the election cannot be changed. The various benefit options and corresponding death benefits are as follows:
Unmodified Option: This option provides the maximum monthly lifetime benefit.
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Benefit paid to retiree |
Maximum allowance provided for retiree's lifetime. Based on age, service credit, and final average salary. |
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Benefit paid to beneficiary, upon your death |
If beneficiary is qualified spouse*, lifetime monthly allowance equal to 60% of the retiree’s allowance at the time of death.
If beneficiary is minor children, monthly allowance equal to 60% of the retiree’s allowance at the time of death payable until minor child(ren) marry or reach age 18 (or age 22 if they remain unmarried and enrolled as a full-time student in an accredited school).
If other than the above, one time, lump sum payment of retiree’s accumulated contributions and interest, minus monthly payments already paid.
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If named beneficiary dies before you |
New named beneficiary will only receive a lump sum payment of your accumulated contributions and interest, minus monthly payments already made to you, upon your death. |
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Special Consideration |
A qualified spouse is someone to whom you have been married at least one year prior to your retirement. |
* Or Domestic Partner
Temporary (Added) Annuity Option — Temporary increase / reduction in benefit when age 62
Benefit paid to retiree |
Temporarily increases retirement allowance to members under age 62
Reduces allowance upon reaching age 62 and Social Security eligible.
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Benefit paid to beneficiary, upon your death |
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If beneficiary is
qualified spouse*, lifetime monthly allowance of 60% of the unmodified
allowance you were receiving.
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If beneficiary is minor
children, monthly allowance of 60% of the unmodified allowance until
they marry or reach age 18 (or age 22 if they remain unmarried and
enrolled as a full time student in an accredited school).
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If other than the
above, one time, lump sum payment retirement upon reaching age 62
regardless of whether or not you receive Social Security.
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Requires that you
submit a Social Security Estimate to ACERA — this estimate is used by
ACERA to determine the factors for the calculation of your advance and
reduction of your ACERA benefit only.
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Due to the use of
estimated Social Security benefits, the retirement reduction at 62 may
be more or less than the actual Social Security benefit.
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The temporary advance
is from your ACERA member contributions — there is no communication or
link to Social Security benefits. The two benefits are independent of
each other.
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* Or Domestic Partner
Option 1- Cash Refund Option
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Benefit paid to retiree |
Reduced allowance to you for your lifetime, compared to the "unmodified" allowance. |
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Benefit paid to beneficiary, upon your death |
One time, lump sum payment of your accumulated contributions and interest, minus monthly payments already made to you.
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If named beneficiary dies before you |
New named beneficiary will only receive a lump sum payment of your accumulated contributions and interest, minus monthly payments already made to you, upon your death. |
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Special ConsiderationS |
This option extends the time it takes for you to receive a refund of all your contributions and earnings from a range of three to five (3 - 5) years to a range of ten to twelve (10 - 12) years.
You may name a new beneficiary at any time.
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Option 2- 100% Joint and Survivor
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Benefit paid to retiree |
Reduced allowance to you for your lifetime, compared to the "unmodified" allowance. Reduction is based upon age of named beneficiary at the time of your retirement. |
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Benefit (Continuance) paid to beneficiary, upon your death |
Lifetime monthly allowance of 100% of the unmodified allowance you were receiving. |
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If named beneficiary dies before you |
New named beneficiary receives a lump sum payment of your accumulated contributions and interest, minus monthly payments already made to you, upon your death. There is no continuance. |
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Special considerations: |
You may name anyone as beneficiary. However, due to California community property laws, your spouse may have certain rights over other designated beneficiaries.
In the event your named beneficiary dies before you, your benefit will not be increased.
Your allowance may be sharply reduced if beneficiary is considerably younger than you. |
Option 3- 50% Joint and Survivor
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Benefit paid to retiree, Benefit (Continuance) paid to beneficiary upon your death |
Lifetime monthly allowance of 50% of the unmodified allowance you were receiving.
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If named beneficiary dies before you |
New named beneficiary receives a lump sum payment of your accumulated contributions and interest, minus monthly payments already made to you, upon your death — There is no continuance. |
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Special considerations: |
You may name anyone as beneficiary. However, due to California community property laws, your spouse may have certain rights over other designated beneficiaries.
In the event your named beneficiary dies before you, your benefit will not be increased.
Your allowance may be sharply reduced if beneficiary is considerably younger than you. |
Option 4-
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Benefit paid to retiree |
Reduced allowance to you for your lifetime, compared to the "unmodified" allowance. Reduction is based upon youngest age of named beneficiary at the time of your retirement. |
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Benefit (Continuance) paid to beneficiary, upon your death |
Allows you to specify dollar amount or percentage of allowance to be paid to your designated beneficiary(ies). |
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If named beneficiary dies before you |
New named beneficiary receives a lump sum payment of your accumulated contributions and interest, minus monthly payments already made to you, upon your death. There is no continuance. |
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Special considerations: |
You may name multiple beneficiaries.
You may name anyone as beneficiary. However, due to California community property laws, your spouse may have certain rights over other designated beneficiaries.
In the event your named beneficiary dies before you, your benefit will not be increased.
Your allowance may be sharply reduced if beneficiary is considerably younger than you. |
Frequently Asked Questions (FAQs):
- Last Modified: 07 / 31 / 2008
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