The temporary added annuity is a temporary increase in retirement benefit (then a permanent decrease) for members who retire younger than age 62. Members who see the most benefit retire significantly under age 62. Members retiring near 62 (like at 61) will probably not find much advantage in this benefit.
The amount of the temporary increase in retirement benefit is based on the Social Security Administration estimates your social security benefit to be if you take the early retirement at age 62.
The increase is paid out with your monthly retirement allowance each month until you reach age 62, at which point your retirement benefit will be permanently reduced by full amount of the Social Security benefit estimated at retirement regardless of whether you actually receive Social Security.
Increased retirement allowance to retiree while under age 62, with allowance reduced by estimated Social Security allowance on retiree’s reaching age 62.
There a few additional things to consider:
- Because Social Security benefits are estimated, retirement reduction at age 62 may be more or less than actual Social Security benefit.
- Requires that retiree submit Social Security Estimate to ACERA, to be used to determine factors for calculation of advance and reduction of ACERA benefit only.
- Temporary advance is from ACERA; there is no communication or link to Social Security benefits, and the two benefits are independent of each other.
- May not be provided if retirement allowance is based on disability retirement.
How to Explore This Option
- Call Social Security and ask for an estimate where you’re stopping work before retirement age. Tell them an estimated date when you’re thinking about stopping work. Ask for an estimate for the early Social Security retirement at age 62.
- Submit a Retirement Estimate Request to ACERA. Check the Retirement Allowance Estimate box and fill in the date of retirement you’d like an estimate for. Also check the Other box, and write in “Temporary Added Annuity Estimate.” Along with the Retirement Estimate Request form, include a copy of the estimate you got from Social Security. ACERA will do some calculations and provide you an estimate for the increase to your retirement allowance prior to age 62, and then the decreased amount of your allowance at age 62 and beyond.