SECTION 1 Welcome to Plan E
About Your LACERA Defined Benefit Plan
All LACERA retirement plans are defined benefit plans; as such they promise to pay a specified monthly benefit at retirement. The monthly allowance you will receive at retirement under Plan E is a lifetime benefit, payable every month for the rest of your life.*
Because your retirement plan is a defined benefit plan, its funds are invested by your employer The funds in your defined benefit retirement plan are invested by LACERA. You do not bear the risk of adverse investment performance. Benefits granted under Plan E are determined solely by the provisions set forth in the plan; they are not affected by market volatility. This differs from a defined contribution plan such as a 457 or 401(k) plan, in which you make the investment decisions and bear the associated risks. In those types of plans, your benefit payments stop when the money is exhausted.
Your LACERA Plan E retirement benefits will not run out; you cannot outlive them.
*Certain eligibility rules apply.
Plan E Provides a Monthly Retirement Allowance for Life
Plan E is a retirement plan for general members of LACERA. As a defined benefit plan, it promises a specified monthly benefit at retirement.
Any Plan E member who meets the minimum age and service requirements may retire for service and receive a monthly retirement allowance for life. The specifics of your retirement benefits are determined by your age at retirement, amount of service credit, and final compensation—in accordance with the provisions of your plan.
In addition, Plan E is a non-contributory plan. That means you do not contribute to it; only the County (or outside district) contributes to it. Rates for the County's contributions are recommended by LACERA's actuary.*
*Plan E contributions made by the County or outside district are credited to the Employer Reserve Account and are not refundable to you or to your employer.
| BENEFIT ENHANCEMENTS* | |
|---|---|
| Purchasable Service Credit | May purchase Additional Retirement Credit (ARC) |
May not purchase County and non-County employment prior to LACERA membership |
|
| Reciprocity | Protects retirement benefits when employees transfer between reciprocal public agencies |
| Retiree Health Care | Eligible for LACERA-administered retiree health care benefits |
| Cost-of-Living | Retirement allowance eligible for cost-of-living (COLA) increases |
*Certain eligibility requirements apply.
DISABILITY, DEATH, AND SURVIVOR PROVISIONS |
|
| Disability Benefits | LACERA does not pay disability benefits if an active member becomes disabled |
|---|---|
| Death Benefits | LACERA does not pay death benefits if a member dies in active service |
| LACERA pays $5,000 death/burial benefit when a retired member dies | |
Survivor Benefits |
Upon the death of a retired member, LACERA pays up to 100 percent of the member's retirement allowance to eligible surviving spouse or domestic partner or minor child(ren) |
| BENEFITS PROVIDED BY LOS ANGELES COUNTY | |
|---|---|
| Retiree Health Care Subsidy | County subsidizes retiree medical/dental insurance based on a minimum of ten years of service credit |
| Disability Benefits | County pays disability benefits in the event an active member becomes disabled* |
| Death Benefits | County pays death benefit in the event an active member dies |
| Life Insurance | County provides $ 10,000 life insurance benefit for active members who die in service** |
*Certain eligibility conditions and restrictions apply.
**Eligible employees may purchase additional coverage. County-sponsored life and disability insurance benefits and options vary for MegaFlex participants. LACERA does not administer these benefits; contact your Department for details on County-sponsored and/or administered insurance benefits.
When Are You Eligible for Retirement?
Members of LACERA Plan E are eligible to retire when they meet either of the following conditions:
- At age 55 with 10 or more years of County (or combined County and reciprocal system) service credit
- At age 70, regardless of years of service credit
A vested member of Plan E who terminated County service prior to retirement (deferred) is eligible to receive a retirement allowance upon fulfilling the minimum age and service requirements.
Advantage of Remaining in Active Service: Ages 56-65
Between the ages of 56 and 65, each year on your birthday, the amount of the allowance you will be entitled to receive upon retirement increases. In other words, the older you are when you retire, the greater the monthly allowance you will receive. (There is no additional age benefit after age 65.)
Your retirement allowance is based on a percentage of your final compensation. Between the ages of 56 and 65, on every birthday, that percentage increases. For example, if you are turning 60 in August, and you retire in July, your retirement allowance will be calculated based on age 59; whereas, if you work one additional month, your allowance would be calculated based on age 60. Depending on your age at retirement and the amount of service credit you have accrued, the additional percentage can range from less than one percent to more than eight percent.
6/16/09