Level Income Option
The Level Income Option is administered by VCERA and is independent of the retirement options listed above. This option offers you a short-term “pension advance” in which VCERA pays an increased monthly retirement benefit until you reach age 62. At that time, VCERA will reduce your monthly benefit by an amount that has an actuarially equivalent value. However, if you file for Social Security at age 62, your adjusted VCERA benefit plus your Social Security benefit should represent a level income throughout your retirement.
If you plan to elect the Level Income Option, please supply VCERA with a recent Earnings and Benefits Statement from Social Security. To be eligible for this option, you must retire for service before age 62 and be fully insured under Social Security.
Your VCERA benefit will be reduced by the full amount of your estimated Social Security benefit at age 62 in accordance with Government Code section 31810. It is your responsibility to apply for Social Security benefits at that time to ensure a level income. VCERA shall not be responsible for financial hardship caused by the election of this option and the resulting benefit decrease at age 62.