Additional Annuity Distribution
If you contributed to the Additional Annuity account during your career, you will need to make a separate election for your Additional Annuity account when you retire.
At retirement, you will have 3 disbursement options – monthly annuity, lump sum payout, rollover to another tax qualified plan, or any combination of the 3. If you elect to receive the Additional Annuity as a monthly allowance, there is no annual cost living adjustment, which means that the amount that we quote to you will be set for your lifetime. Also, there is no automatic spouse/domestic partner continuance after you die. If you would like to leave a continuance to your spouse/domestic partner, you must select either Options B or C and name your spouse.
ADDITIONAL ANNUITY OPTIONS TABLE
| ADDITIONAL ANNUITY OPTIONS TABLE | ||||
|---|---|---|---|---|
| Option | Monthly Allowance | Eligible Spouse/Domestic Partner Continuance | Beneficiary Continuance | Refund of Unused Contributions |
| Full | Largest | No | No | No |
| A | Reduced | No | No | Yes |
| B | Reduced | No | 100% | No |
| C | Reduced | No | 1% to 99% | No |
| * Also applies to Vested Right Requirements | ||||
ADDITIONAL ANNUITY AND TAXES
An important consideration for those members with an Additional Annuity account is the taxes on the distribution. You contribute to the account with post-tax money (money that has already been taxed). You probably expect to receive all of the distribution tax free. This is correct, however, your account earned interest, which has not been taxed, so we must tax this. In addition, the IRS requires a reallocation of your account balances at retirement before we make any distributions.
To understand the reallocation process and the taxes on your retirement, it’s important that you watch the 
short video.