Retirement Plan booklet - sdcera
Retirement Plan booklet - sdcera
Retirement Plan booklet - sdcera
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23<br />
Considering the<br />
Temporary Supplement<br />
to benefit options<br />
Electing the Temporary Supplement gives you an increased<br />
retirement benefit from SDCERA until you are age 62. Then,<br />
beginning at age 62, you will receive a reduced benefit for<br />
the rest of your life.<br />
Ask yourself this question when<br />
considering the Temporary<br />
Supplement: Is it more<br />
important for you to have a<br />
greater retirement benefit from<br />
retirement to age 62 or is it more<br />
important for you to have a steady<br />
income stream throughout<br />
retirement?<br />
If your choice is to elect more<br />
money up front and less money<br />
later, you may determine that<br />
the Temporary Supplement<br />
option works well within your<br />
retirement plans.<br />
However, if your choice is to<br />
receive a steady SDCERA benefit<br />
amount, without an increase or a<br />
decrease, you may determine that<br />
the Temporary Supplement<br />
option is not a good fit for you.<br />
The Temporary Supplement applies to all benefit options. Regardless of<br />
which option you select, if you retire before age 62 and will be eligible<br />
for Social Security benefits later when you reach age 62, you will need to<br />
decide whether to elect the Temporary Supplement as part of your SDCERA<br />
benefit. If you retire at or after age 62, if you will not be eligible for Social<br />
Security benefits or if your retirement benefit is based on a disability<br />
retirement, then you are not eligible for the Temporary Supplement.<br />
If you elect the Temporary Supplement, you will receive a greater retirement<br />
benefit (more money from SDCERA) until age 62. Then, beginning<br />
at age 62 you will receive a reduced SDCERA retirement benefit (less<br />
money from SDCERA) for the rest of your life. The expectation is that at<br />
age 62, you will begin receiving your Social Security benefit and the two<br />
retirement incomes (from SDCERA and Social Security) will approximate<br />
the income that SDCERA paid prior to age 62.<br />
Consider the Temporary Supplement carefully because SDCERA does<br />
not calculate the reduced benefit amount (after age 62) based on your<br />
actual Social Security benefit amount. Rather, your SDCERA benefit<br />
amounts (both before and after age 62) are calculated based on an<br />
estimate at the time of your retirement and are not adjusted later.<br />
Remember, when you elect the Temporary Supplement, the benefit you<br />
receive from SDCERA after age 62 will be less than the benefit you would<br />
have received if you had not elected this option.
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