PPA ALLOWS USE OF 457 FUNDS ON SERVICE CREDIT PURCHASES
On September 7, 2006, in accordance with the Pension Protection Act of 2006 (PPA), LACERA began accepting 457 monies for the purchase of service credit. The PPA allows LACERA to accept a direct transfer of 457 Plan funds for the purchase of service credit in Plan E to D transfers, the conversion of General to Safety service credit, and the purchase of Additional Retirement Credit (ARC).
You may also purchase and convert service credit using before-tax dollars by:
- Authorizing payroll deductions
- Rolling over funds from your 401(k), 401(a), or 403(b)
- Rolling over funds from a traditional IRA
- Rolling over funds from a qualified plan
The PPA also allows LACERA to accept after-tax dollars.
If you are interested in purchasing or converting service credit, using 457 funds or after-tax dollars, call 1-800-786-6464 and speak with a LACERA Retirement Benefits Specialist to obtain additional information. We will continue to communicate PPA updates to you!
Under the Pension Protection Act of 2006 ANY of These Services
Can Now Be Purchased Using ANY of These Payment Types |
SERVICES |
ALLOWABLE PAYMENT |
• Redeposit of Withdrawn Contributions
• Plan Transfer
• Temporary Time
• Sick Without Pay (SWOP)
• Military Service
• Federal Service
• Other Public Agency (OPA)
• Plan E to D transfers
• General to Safety Conversion
• Additional Retirement Credit (ARC)
• Plan E Elective COLA |
• Payroll Deductions
• Qualified Plans: 401(k)/401(a)/KEOGH
• 457 Fund Plan Transfers: In-service or after termination
• IRAs: Non-Roth/Non-After Tax
• 403(b)
• After-tax Dollars |
3/21/08
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