LACERA DEFINED BENEFIT PLAN

DEFINED CONTRIBUTION PLAN

• Your retirement allowance is a lifetime allowance; it will be paid to you every month for the rest of your life

• Benefit payments run out when money is exhausted

• Employer promises to pay you a specified benefit when you retire

• Employer promises to periodically contribute specified amount to member account

• LACERA invests the funds; your employer bears the risk of adverse investment performance

• Employee decides how to invest the funds and bears the risk of adverse investment performance

• Benefit amount is determined by:
• Final compensation
• Years of service
• Age at retirement

• You are not affected by investment performance

• Benefit amount determined by:
• Investment performance
• Amount of contributions

• Inflation protection provided through cost-of-living (COLA) programs

• No COLA program

• Allows for reciprocal pension benefits with specified public employers

• Possible transfer of member funds to tax-qualified plans as permitted by law

• Offers selection of retirement benefit options

• Not applicable

• Includes $5,000 lump-sum death benefit for retirees

• Not included

• Funds not available during active service

• Permits hardship withdrawals, sometimes permits loans during active service