Retirement Plan booklet - sdcera

21
Selecting a retirement
benefit option
In addition to age, service credit and final compensation, the amount of your retirement
benefit is also affected by the option you select at the time of your retirement. The
payment options determine the benefit that will be paid to you for your lifetime as well
as any benefit that will continue to be paid to your survivor after your death. You must
make a selection on your retirement application and your choice cannot be changed.
Unmodified option
The Temporary Supplement
is available regardless of which
option you select. If you retire
before age 62 and will be eligible
for Social Security benefits
at age 62, you will need to
decide whether you will elect
the Temporary Supplement
as part of your benefit. The
Temporary Supplement
increases benefits prior to
age 62 and reduces benefits
after age 62. Read more about
the Temporary Supplement
option on page 23.
This option provides the highest monthly benefit for your lifetime.
Upon your death, your eligible beneficiary receives a 60% survivor’s
continuance for their life. Your beneficiary must be a spouse/registered
domestic partner or minor child(ren). There is no age requirement for your
spouse/partner, but you must be married/registered for at least 12 months
prior to your retirement date. If you are not married/registered for at
least 12 months prior to your retirement date, or if you marry after you are
retired, you must be married/registered for at least two years prior to your
death, and in this case your spouse/partner must be at least age 55 on the
date of your death.
If you do not have an eligible spouse/partner at the time of your death, the
survivor’s continuance can be paid to your eligible minor child(ren). To be
eligible, a child must be unmarried and under age 18, or unmarried and
under age 22 if enrolled as a full time student in an accredited college.
If you do not have an eligible spouse/partner or minor child to receive the
survivor’s continuance at the time of your death, the survivor’s continuance
will not be paid. However, if there is any money left in your member
contribution account, it can be paid as a one-time lump-sum payment to
any beneficiary you have designated.
If you elect this option, you cannot change your beneficiary after retirement,
unless you marry and your new spouse/registered domestic partner
becomes eligible for the continuance.