PROSPECTIVE TRANSFER — E TO D
PROSPECTIVE PLAN TRANSFER — PLAN E TO PLAN D
A Prospective Transfer (PPT) is a simple plan change; you switch from Plan E to Plan D and begin making the monthly contributions. Other key points of a prospective transfer are:
- Your Plan D contribution rate is based on your current age.
- You become a Plan D member the first day of the month following 30 days after your application is received by LACERA.
- You become eligible for disability and survivor benefits upon meeting certain service requirements. (See Disability Retirement.)
- A PPT does not require you to purchase any of your Plan E service credit.
- A PPT provides the option to convert some or all of your Plan E service credit to Plan D.
- Upon completion of payment to convert your Plan E service credit, your Plan D contributions are computed based on your age at the birthday nearest the first date of the service period you purchased.
- When your transfer is effective, you will not be eligible to transfer back to Plan E for three years from your effective date of transfer to Plan D. (Certain disabled PPT transferees may be exempt from the three-year waiting period. Read more about this exemption.)
- Once you elect a PPT, you may not elect an Open Window Transfer.
Payments to purchase and convert Plan E service credit may be made using any of the following methods:
- Payroll Deductions
- Qualified Plans: 401(k)/KEOGH
- 457 Fund Plan Transfers: In-Service or after Termination
- IRAs: Non-Roth/Non-After Tax
- 403(b)
- After-Tax Dollars
If you retire, terminate, or defer your membership before completing your purchase of Plan E service credit, you have 120 days to complete payment using any of the methods referenced above.
HOW TO TRANSFER
To initiate a Prospective Transfer from Plan E to Plan D you will need a Prospective Transfer Election Form. The form is part of the Prospective Transfer Election to Contributory Retirement Plan D package. To order the package, call 1-800-786-6464.
- Complete the Prospective Transfer Election Form and
return it to LACERA.
NOTE: Once LACERA has received your Prospective Transfer form it cannot be rescinded. - LACERA will notify you by mail of your effective date of transfer.
1/3/11
