Choose your pension payment option in section 1 of your pension form. Your personalized form shows your pension estimate for each payment option.
Elect only one payment option for each pension benefit. If you elect a joint pension, you need to provide your joint pensioner’s name, birth date and Social Security number.
What’s your pension formula?
Most people have one or the other:
- Final pay formula: Hired before 2013
- Cash balance formula: Hired 2013 or later—or elected the cash balance pension formula in 2013
You’ll have both formulas if you elected the cash balance formula during the pension choice period in 2013 or if you were rehired in 2013 or later.
Elect one payment option for each pension formula. You can choose the same or different payment options and joint pensioners, and you can start your two pension benefits at the same time or separately.
Did you contribute to the Retirement Plan before 1973?
Section 1 of your personalized form will show your contributions if you made any. If you don’t see contributions on the form, you didn’t make any. You can skip this section.
If you made contributions, you need to decide what to do with them:
If you elect a refund, your spouse must provide notarized consent in the spousal consent form of the pension election form—regardless of the other options you choose for the contribution refund or joint pension.
Want a refund of your pre-1973 contributions?
Refund election dates are tied to your pension start date—not to your retirement date. If your pension is delayed, your refund will be delayed, too. Here are your choices:
You have three payment options for your refund:
See the PG&E Pension Guide for details about refunds.
Want to delay your pension?
Section 1 of your personalized form asks you if you want to delay your pension. Consider this if you:
- Have a new job lined up
- Are retiring early (if you delay your pension, your benefit may increase)
You’re not required to start your pension to receive retiree medical coverage. If you delay your pension, you’ll still be considered a retiree for all your other retirement benefits.
Final pay formula and early retirement reductions
If you have an early retirement reduction, it will decrease for every month that you delay the start of your monthly pension payments—until you qualify for an unreduced pension. The later you start your pension payments, the smaller the reduction for early retirement.
Any reductions in your monthly pension benefit will be based on your years of credited service and your age when your pension payments begin. The final pay formula’s early retirement reduction factors are calculated using bands of service years, as described in the Summary of Benefits Handbooks for Management and A&T employees and for Union-represented employees.
Delaying your cash balance benefit
If you want to delay your cash balance benefit, you can keep it with the PG&E Retirement Plan to continue earning interest until you want to receive payments. Or you can take a lump-sum distribution and roll it into another retirement plan, like an IRA, to avoid potential immediate taxes and IRS early withdrawal penalties.