Member Benefits

Active
   City
   Port
   Airport Authority
      General
         Contribution Rates
         Vesting
         Terminating Employment
         Reciprocity
         DROP
         Service Retirement
         Benefit Payment Options
         Disability Retirement
         Pre-Retirement Death Benefits
Retired
Resources

Benefit Payment Option

Maximum Benefit Option

The Maximum Benefit is the standard retirement benefit, and provides you with the highest possible monthly benefit to you for life. It also guarantees your spouse or RDP a 50% lifetime continuance upon your death. You must be married or in a registered domestic partnership on the day you retire or enter DROP and must designate your spouse or RDP as your beneficiary. Single members who select this benefit may either receive a lump sum refund of their surviving spouse contributions, including interest, or have these contributions treated as voluntary additional contributions made to provide a larger benefit.

Option 1

With Option 1, you receive a reduced monthly retirement benefit for life. If you die before you receive the total amount of your accumulated retirement contributions (the contributions you made while you were working) in the form of your retirement benefit, SDCERS will pay the balance to your beneficiary or estate. If you die after your retirement benefit payments have exceeded your accumulated contributions, no payments will be made to your beneficiary or estate. On average, most members' accumulated contributions are paid out within 10 years of retirement. Also, regardless of whether or not you have exceeded your contributions at the time of your death, your beneficiary will not receive a lifetime continuance.

Option 2

If you select Option 2, you will receive a reduced monthly retirement benefit until your death. When you die, your spouse, RDP or beneficiary will receive a continuance equal to 100% of your reduced monthly retirement benefit for the rest of his or her life. The amount of the reduction is based on the age difference between you and your beneficiary. The greater the age difference, the greater the reduction in your monthly retirement benefit. Also, your beneficiary need not be your spouse. Federal tax laws limit the continuance you may leave to a beneficiary who is not your spouse and who is more than 10 years younger than you. This may reduce the amount of the benefit your beneficiary may receive. SDCERS' Retirement Counselors can help you determine the maximum continuance you may leave to your non-spouse beneficiary.

Option 3

Option 3 is structured like Option 2 but the continuance percentage for your beneficiary is less. Your monthly benefit will be proportionally reduced to provide a 50% benefit continuance to your named beneficiary for life. Unlike the Maximum Benefit, however, which also provides a 50% continuance, your beneficiary need not be your spouse. When you die, your beneficiary will receive a lifetime monthly benefit equal to 50% of your reduced monthly retirement benefit. As under Option 2, the amount by which your monthly retirement benefit will be reduced, will depend upon the age difference between you and your beneficiary.

Option 4

Option 4 allows you to select a specific percentage to leave as a continuance to your beneficiary. Under Option 4, you will receive a reduced lifetime monthly retirement benefit. Upon your death, your beneficiary will receive a percentage of your reduced monthly benefit in the amount selected by you at the time of retirement or entry into DROP. The higher the percentage you choose to leave to your beneficiary, and the greater the age difference between you and your beneficiary, the greater the reduction in your monthly retirement benefit. Your beneficiary need not be your spouse. Federal tax laws limit the continuance you may leave to a beneficiary who is not your spouse and who is more than 10 years younger than you. This may reduce the amount of the benefit your beneficiary may receive. SDCERS' Retirement Counselors can help you determine the maximum continuance you may leave to your non-spouse beneficiary.

connect
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
  • News
website survey
    • Website Survey

00:00/00:21

00:00/00:07