OPEN WINDOW TRANSFER - E TO D
An Open Window Transfer from Plan E to Plan D requires you to purchase all your previous years of Plan E service credit. It can be purchased in a lump sum or you may make monthly payments over a maximum of ten years. You remain a Plan E member until you have paid the transfer contract in full.
- Contribution rate is based on your age at entry to LACERA
- More cost-effective method of converting all your Plan E service credit to Plan D than Prospective Transfer
- Upon fulfillment of transfer contract, you become a Plan D member; your membership is retroactive to your most recent date of entry into a LACERA retirement plan
Eligibility to purchase credit for service prior to LACERA membership varies and is based on your employment status prior to joining Plan E. For details, refer to the Open Window Transfer Guide or consult with a LACERA Retirement Benefits Specialist.
Under the Pension Protection Act of 2006 payments associated with an Open Window Transfer may be made using any of the following methods:
- Payroll Deductions
- Qualified Plans: 401(k)/KEOGH
- 457 Plans In-Service*
- 457 Plans After Termination
- IRAs: Non-Roth/Non-After Tax
- 403(b)
- After-Tax Dollars
*Certain restrictions apply, check with the plan administrator for details pertaining to your individual situation.
If you retire, terminate, or defer your membership before completing your plan transfer, you have 120 days to complete payment using any of the methods referenced above. If payment has not been completed within 120 days, you will remain in Plan E and your retirement allowance will be calculated according to the provisions of Plan E.
HOW TO INITIATE THE TRANSFER PROCESS
To receive personalized information on your cost for an Open Window Transfer, you will need a Request for Cost Notification Form. You can access the form and the Open Window Transfer Guide on the Brochures & Forms page, or you may order the form and brochure by calling LACERA at 1-800-786-6464.
When you have completed the Request for Cost Notification Form:
- Mail it to LACERA in the envelope provided.
- Wait approximately 60 days to receive a Transfer Cost Notification Letter and Payment Contract from LACERA.
- To proceed with the transfer, sign and return the contract by the expiration date.
- Your payroll deductions will begin within 30-45 days from the expiration date.
1/11/07
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