WHAT
IS SERVICE CREDIT?
Retirement Service Credit (also known as Service
Credit) is one of the factors used to calculate the allowance
you will receive when you retire. The other factors are your
retirement plan, age at retirement, and final compensation. (Final
Compensation is an average of your highest monthly compensation
during any one year for Plans A, B, C, D or three years for Plan
E.)
EARNING
SERVICE CREDIT
Members of contributory Plans A, B, C, and D earn one month of
retirement service credit for each month of County employment in
which a retirement contribution is made. No service credit is earned
if you are without pay for an entire month.
ADVANTAGES
OF PURCHASING SERVICE CREDIT
Since years of service credit is one of the factors that determines
the monthly allowance you receive when you retire; the more years
of service credit you have, the higher your monthly retirement
allowance will be.
Service credit also affects the cost of your LACERA-administered
retiree health care benefits. The County subsidizes retiree medical/dental
insurance based on a member's years of service credit; the more service
credit you have, the more the County pays toward your premiums.
PURCHASE
ELIGIBILITY
Only
members of a contributory retirement plan may purchase service
credit; Plan E members may not purchase credit for prior County
or non-County service. (All members, including
Plan E members, may purchase Additional Retirement Credit.) Various eligibility
requirements apply to service credit purchases.
TYPES
OF SERVICE CREDIT THAT MAY BE PURCHASED
Service credit may be purchased for unpaid sick leave, as well
as certain types of County and non-County government service
performed prior to the date you became eligible for LACERA membership (various eligibility requirements apply). (View
descriptions, eligibility requirements, contract terms, and calculation
methods of service credit.)
Previous County service may include:
- Temporary Time
- Permanent Time
- Redeposit of Withdrawn Contributions
- Sick Without Pay (SWOP)
- General to Safety Service
Other government service may include employment with:
- United States of America, State of California, or any Public Entity located within the State of California
- Other Public Agency (California)
- Federal/Military
- Any Public Agency located wholly in the County of Los Angeles
Purchasing Non-County service will increase your total years of service credit, but will not count toward meeting the minimum service credit requirement to retire or to qualify for a nonservice-connected disability, pre-retirement survivor benefits, or to defer your retirement.
Additional
Retirement Credit (ARC) is credit you may
purchase to increase your service credit total. It is not based
on actual employment. To find out more about ARC, click here.
REDEPOSIT
OF WITHDRAWN CONTRIBUTIONS
Restoration of Prior Retirement Plan
If you are a returning employee and were previously in Plan A,
B, C, or D, but terminated service and withdrew your retirement
contributions, you may restore all the benefits of your prior plan;
you must elect Plan D then redeposit your previously withdrawn
contributions, plus interest.
MORE ABOUT
SERVICE CREDIT...
For additional information on service credit, refer to:
Or
call 1-800-786-6464 to speak with a knowledgeable LACERA Retirement
Benefits Specialist
8/11/09
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