Retirement Option 3 is a benefit under which you receive a reduced Unmodified retirement allowance during your lifetime with 50 percent of your reduced allowance paid monthly to your named beneficiary upon your death. The reduction to your benefit is based on the difference in your age and the age of your beneficiary. The greater your age difference, the greater the reduction.
This option may be advantageous if your spouse, domestic partner, or minor child does not qualify for a monthly continuing allowance. It may also be appropriate if you have been ordered by a court to name an ex-spouse as your beneficiary.
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Highlights
| Eligible Beneficiaries | Contributory Plans (A, B, C, D or G) Survivor Benefit | Non-Contributory Plan (E) Survivor Benefit | Beneficiary Changes After Retirement |
|---|---|---|---|
| Any named beneficiary(ies) with an insurable interest in your life | 50% of member's reduced allowance | 50% of member's reduced allowance | No |
To estimate your monthly allowance amount under the different options, log in to My LACERA to use the retirement benefit estimate calculator.
Eligible Beneficiaries
Under Retirement Option 3, you may choose anyone with an insurable interest in your life as your beneficiary. People with an insurable interest in your life include those who depend on you for education, support, money, property, and/or services.
Please note that when submitting your retirement application, you will need to provide a photocopy of your beneficiary’s birth certificate with a signed Certificate Attestation Form certifying that the copy submitted is correct and contains no alterations from the original. LACERA will accept your signed retirement election and honor the retirement date requested; however, we cannot process your application or provide retirement benefits until this documentation is provided.
Change Your Beneficiary After Retirement
Beneficiary of the Survivor Allowance
With Retirement Option 3, you may not change the beneficiary of your retirement benefit after you retire. If your beneficiary dies before you, the reduction to your retirement allowance remains in effect.
Beneficiary of the Lump-Sum Death/Burial Benefit
All LACERA retirees are entitled to designate someone to receive a one-time, $5,000 lump-sum death/burial benefit. This benefit is flexible, and you may change the named beneficiary after retirement.
Retiree and Survivor Healthcare
All LACERA retirees are eligible to enroll in a LACERA-administered retiree healthcare plan. Upon the death of a retired member, any survivor or beneficiary who is receiving a continuing monthly benefit from LACERA and who qualifies as a surviving eligible dependent, as defined by LACERA’s Retiree Healthcare Administrative Guidelines, is eligible to enroll in LACERA-administered healthcare coverage.
Under Retirement Option 3, the beneficiary of your retirement allowance may be anyone with an insurable interest in your life. For survivor retiree healthcare, however, stricter eligibility rules apply. Speak to a LACERA Retirement Benefits Specialist to determine whether your selected beneficiary under Retirement Option 3 would be eligible for survivor retiree healthcare.
At retirement, if you do not designate your eligible beneficiary to receive a continuing benefit upon your death, he or she will not be eligible for LACERA-administered survivor healthcare.
Visit Retiree Healthcare or Survivor Healthcare to learn more about benefits and coverage.
Next Steps
If you are ready to start the retirement process, call LACERA at 800-786-6464 or schedule an appointment to speak with a Retirement Benefits Specialist.