SERVICE CREDIT: OVERVIEW
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, and 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 are 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 healthcare 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- Redeposit of Withdrawn Contributions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.
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:
- Categories of Service Credit
- Service Credit: Costs and Increased Benefits
- Service Credit: Initiating a Purchase
- Purchasing Service Credit: Former Plan E Members
- FAQs for Active Members
- FAQs for Prospective Transfer & Service Purchase
- FAQs for Additional Retirement Credit (ARC)
Or call 1-800-786-6464 to speak with a knowledgeable LACERA Retirement Benefits Specialist
11/10/11