Income Smoothing Option

If you retire before age 65 you may elect the income smoothing payment option. This payment option provides an increase in your monthly pension from retirement to age 65 and a reduction to the monthly lifetime pension you receive after age 65.

The intent of the income smoothing option is to assist members in smoothing out the retirement income they receive from different sources throughout retirement.  

If you choose this option, the reduction to your pension at age 65 occurs regardless of when you apply for or how much you receive from government programs.  

Here are some factors to consider when deciding whether the income smoothing option is right for you:

  • Your life expectancy.
  • Expected financial needs prior to and following age 65.
  • Expected retirement income from other sources.  
  • Any income tax considerations.
  • Anyone born after March 1958 will not be eligible to receive Old Age Security benefits at age 65.