CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION
  
 

The Unmodified Option

The unmodified option pays the highest monthly benefit to you.

Upon your death after retirement, your eligible spouse or registered domestic partner will receive 60% of your monthly benefit for the rest of his or her lifetime. If you do not have an eligible spouse/registered domestic partner, but do have minor children, the 60% continuance is paid to them until the youngest (dependent, unmarried) child reaches 18 (22 if a full-time student). If you do not have either an eligible spouse or dependent children, the balance of your contributions and interest remaining in your retirement account will be paid in a lump sum to your designated beneficiary.

Eligible spouses/domestic partners must have been married to you, or registered with the State of California as your domestic partner, at least one year prior to your retirement date OR after retirement, have been married/registered as a domestic partner for at least 2 years prior to your death, and be at least 55 years old.
31760.1
Option 1
Option 1 reduces your monthly benefit, but potentially leaves a lump sum for your survivors.

This option reduces your monthly retirement benefit, in comparison to the Unmodified Option, in order to "save" some funds in your account for your surviving beneficiary. Option 1 pays a reduced monthly benefit until death of the member, then pays any remaining accumulated contributions to the member's estate or survivor in a lump sum. (A word of caution: Your retirement plan is a defined benefit plan, meaning your benefit is not based on your account balance. Your monthly benefit continues regardless of the balance in your account. However, benefit funds are partially drawn against your accrued contributions. Depending on the member's lifespan, there may not be any contributions left at death for a survivor to collect.

The amount your monthly benefit is reduced depends on your age at retirement, the age of your beneficiary at your retirement date, and the life expectancy of both parties.
31761.

Option 2
Option 2 reduces your monthly benefit, but provides a reduced monthly benefit for the lifetime of your survivors.
Option 2 reduces* your monthly retirement benefit, but after your death, pays the same reduced benefit to your named beneficiary for the rest of their lifetime. Trusts cannot be named as beneficiaries of this option; by 1937 Act statute, trusts may be named beneficiaries to lump sum payments only.
*The amount your monthly benefit is reduced depends on your age at retirement, the age of your beneficiary at your retirement date, and the life expectancy of both parties.
31762.
Option 3
Option 3 reduces your monthly benefit to 50% of the full amount, but provides the same reduced monthly benefit to your survivors for their lifetime.

Option 3 reduces your monthly benefit by 50%, as compared to the Unmodified Option, but after your death pays the same reduced monthly retirement benefit to your beneficiary for the rest of their lifetime. Trusts cannot be named as beneficiaries of this option; by 1937 Act statute, trusts may be named as beneficiaries to lump sum payments only.

The amount of reduction for Option 2 and 3 is based on your age at retirement, the age of your beneficiary(ies) at your retirement date, and life expectancy of all parties.
31763.
As required by law, retirement benefit reduction factors are calculated using life expectancy estimates developed by licensed, professional Actuaries employed by CCCERA, who specialize in retirement and benefit issues.
At retirement each member and chosen beneficiary(ies) have specific, individual demographic information used to actuarially calculate the prospective reduced monthly benefits and potential survivor benefits associated with Options 1, 2, or 3. Therefore, without actual data, it is impossible to estimate what a given benefit may be for any option. In addition, combined total benefits payable to multiple beneficiaries may not exceed 100% of the member's basic retirement allowance.
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