Post

Temporary Added Annuity Option
An Optional Temporary Benefit Increase (Then Permanent Decrease) for Members Retiring Younger Than 62

The temporary added annuity is a temporary increase in retirement benefit 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 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 (sometime known as a Stop Work Estimate), 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.]
Get an Estimate

The best way to get an estimate of how much this benefit pays out is to first call Social Security for their age 62 benefit estimate.  Then log in to Web Member Services using the blue login button at the top of the page.  Navigate to the Benefit Estimator, and put in your Social Security monthly benefit estimate amount in the last field on the form.  The Benefit Estimator will give you an ACERA benefit for each retirement option, as well as an estimate your retirement benefit after your allowance is reduced at age 62.

Commands