PENSION PROTECTION ACT OF 2006
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.
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12/15/10
