Terms to Know…
Active Member: A member of LACERA who is currently employed by the County.
Accumulated Contributions: Member contributions plus credited interest.
Additional Retirement Credit (ARC): Credit that may be purchased to increase your service credit total. It is not based on actual employment and does not count toward retirement eligibility, vesting, or retiree health care subsidy.
CERL: Abbreviation for the County Employees Retirement Law of 1937, the law governing LACERA and 19 other county retirement systems in California.
Continuing Allowance: A monthly survivor benefit paid following the death of a retired member. In some cases, a continuing allowance may be paid following the death of an active member.
Credited Interest: Interest credited on member contributions. Interest is accrued on June 30 and December 31 on all member contributions that have been in the retirement fund for at least six months immediately prior to the date of credit.
Deferred Member: A vested member of LACERA Plan A, B, C, or D who left County service and left his or her plan contributions on deposit with LACERA.
Deferred Reciprocal Member: A non-vested contributory member who terminates County service, leaves his or her plan contributions on deposit with LACERA, becomes employed by a reciprocal system within six months of termination, and establishes reciprocity.
Disability Retirement: Retirement granted when the Board of Retirement determines a member is permanently incapacitated due to a physical and/or mental condition that prevents the member from performing his or her regular job duties.
Employer Reserve Account: An account representing the balance of employer contributions toward future retirement benefit payments.
Final Compensation: An average of the member’s highest monthly pensionable earnings during any 12-consecutive-month period, it is one determining factor in establishing a member’s monthly retirement allowance.
General Member: A permanent employee of Los Angeles County or an outside district working three-quarter time or more in a position other than firefighting, forestry, lifeguarding, or law enforcement (including District Attorney investigators).*
Member Reserve Account: Refers to the total combined balance of all member contributions and related earnings.
Nonservice-Connected: A disabling condition unrelated to the member’s County employment.
Pensionable Earnings (aka Pensionable Income or Compensation Earnable): The amount of income used in determining a member’s plan contributions and in calculating a member’s final compensation. Income included in pensionable earnings depends on the member’s date of hire and is subject to the limitations set forth in IRS Code Sections 401(a) and 415(b).
Retired Member: A LACERA member who has been granted retirement from County service by the Board of Retirement.
Retirement Option: A format for determining how retirement and survivor benefits are paid. Safety Plans A and B offer a choice of six Retirement Options.
Reciprocity: A special relationship between LACERA and certain other California public retirement systems that protects retirement benefits earned under more than one retirement system.
Safety Member: A permanent employee of Los Angeles County working three-quarter time or more in firefighting, forestry, lifeguarding, or law enforcement (including District Attorney investigators).
Service Credit: One of the components used to calculate a member’s retirement allowance. Plan A and B members earn service credit for each payroll period in which a retirement contribution is made.
Service-Connected: A disabling condition resulting from the member’s County employment.
Service Retirement: Retirement from County service granted by the Board of Retirement to a member who has met the minimum age and service requirements.
Vested: An employee’s entitlement to receive certain benefits accrued under his or her retirement plan. In Plan A and B this is based on the completion of five or more years of active County (or combined County and reciprocal system) service. Being vested entitles you to a retirement allowance when you terminate employment and meet the minimum age and service requirements. Vesting also entitles you to terminate County employment and defer receiving your retirement allowance until you are eligible and ready to apply for retirement.
*Certain lifeguard positions may be classified as general member positions.
6/16/09