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LACERA Home Page > FAQs |
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FREQUENTLY ASKED QUESTIONS - FAQs |
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This page contains answers to frequently asked questions regarding LACERA benefits.
(The following links will direct you to the appropriate sections within this page.) |
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1. Q: I'm a new member and selected a retirement plan by the Plan Election Due Date. Why am I being billed for back contributions?
A: You owe back contributions because your membership took effect before LACERA received your plan election. This situation is common because, although your membership begins the first of the month following your date of hire, you have up to 60 days to elect your plan.
Your back contributions may be paid either in a lump sum (by check, with after-tax dollars) or through payroll deductions (with before-tax dollars). If you choose payroll deductions, each month of back contributions may be paid over a four-month period. (12-20-06)
2. Q:
I am returning to County Service. Which retirement plan
will I be in?
A: Returning employees can restore to a previous retirement plan by meeting certain conditions. For details regarding your personal situation, speak to a LACERA Retirement Benefits Specialist. If you deferred your retirement by leaving your contributions on deposit when you terminated service, you must resume membership in your previous plan. If you were previously a member of a contributory plan and withdrew your contributions when you terminated service, you can restore all the benefits of your previous plan, if you:
- Elect Plan D
- Redeposit all your past contributions, plus interest
If you were a former Plan E member, you may elect either Plan D or Plan E when you return to service. (9-14-06)
3. Q: Where can I get information regarding my retirement plan choices?
A: To
assist new members with their retirement plan choices, LACERA holds New
Member Workshops every Wednesday, contingent on reservations.
At the workshop we will discuss all the information outlined in the New
Member Guide, such as the differences between plans, and other important
points to consider when selecting a retirement plan. Attendees also have
the opportunity to ask questions and speak with a LACERA Retirement Benefits
Specialist. To register for a workshop, call 1-800-786-6464. (6-27-06)
4. Q: What are the basic differences between Plan D and Plan E?
A: Plan D: Is a contributory plan to which both you and your employer contribute. It provides a larger scope of benefits than Plan E. Plan D members are vested earlier, and become eligible for retirement sooner than Plan E members. The retirement allowance Plan D provides is based on a higher maximum percentage (100%) of the member’s final compensation than that of Plan E (80%). Plan D also provides pre-retirement death and survivor benefits.
Plan E: Is a non-contributory plan, only your employer contributes; you do not contribute. Plan E does not provide pre-retirement death and survivor benefits; Plan E members are covered by the County Long-Term Disability and Survivor Benefit Plan. The County provides a $10,000 life insurance benefit when a Plan E member dies in active service; whereas the County benefit to Plan D members is $2,000. Plan E members are not eligible to purchase service credit for government service prior to LACERA.
Returning Members should note: Under Plan D, returning employees who were prior members of a LACERA contributory plan may be eligible to restore all the benefits of their previous plan. Certain restrictions apply; call 1-800-786-6464 to speak with a Retirement Benefits Specialist. (8-7-06)
5. Q:
I’m a new member. How can I learn about my LACERA
benefits?
A: Visit
our New
Member section under Benefits. This section offers plan
information and new member workshop schedules. Take a look at the Active
Member section, where you can find information about vesting,
reciprocity, and purchasing service credit. You will also receive LACERA's PostScript newsletter
quarterly. (4-6-07)
6. Q:
I am a new member. How long do I have to submit my Sworn
Statement form?
A. You
have 60 days from your date of hire to make this important decision.
If you don't return the forms, by the deadline, you will automatically
be assigned into Plan E.*
*If you received your
New Member Guide and Member Sworn Statement and Election
of Retirement Plan form more than 14 days after your date
of hire, your Plan Election Due Date is 45 days from the
date you received these materials. Return your Sworn
Statement and Beneficiary Designation Form to your HR Officer by
the Plan Election Due Date indicated on the statement. (5-12-08)
7. Q.
Once I complete my Member Sworn Statement and Election
of Retirement Plan, who should I submit it to?
A. Submit your completed Sworn Statement and
Election of Retirement Plan to your Human Resources Officer
by the plan Election due date indicated on the statement. (5-12-08)
8. Q.
I did not return my Member Sworn Statement form by the 60-day deadline. I am now in Plan E by default. Can I switch to Plan D?
A. Yes. Once you are in Plan E you can elect
Plan D by initiating a Prospective Transfer from Plan E to
Plan D or initiating an Open Window transfer to Plan D. (5-12-08)
9. Q:
If I resign from County service, withdraw my retirement
contributions, and then return to work for the County
at a later time, can I go back to my previous retirement
plan?
A: If
you are a returning employee and were previously in Plan A, B,
C, or D and withdrew your retirement contributions, you may restore
all the benefits of your prior plan. You must elect Plan D then
redeposit your previously withdrawn contributions, plus interest.
We recommend that you call LACERA at 1-800-786-6464 and speak
with a Retirement Benefits Specialist to discuss your individual
situation. (6-11-08)
10. Q:
How does LACERA determine the effective date of membership?
A: If
you are a General Member, you have 60 days from your
date of hire to elect Plan D or Plan E . If you don’t
return your Member Sworn Statement and Election of Retirement
Plan form by the plan election deadline, you will automatically
be assigned into Plan E and it will be effective on the first
of the month following your date of hire. If you elect Plan D
within 60 days from your date of hire, your membership in Plan
D will be effective on the first day of the month following your
date of hire.
Safety
Members are automatically enrolled in Safety Plan B effective
the first day of the month following your date of hire. (
10-24-08 )
11. Q:
How does LACERA determine member contribution rates?
A: Member
contributions are a percentage of your base salary plus other
pensionable earnings and are based on your entry age into LACERA.
For the course of your County career, your contributions are
calculated based on your entry age. For example, if your official
entry age is 30, your contributions will always be based on
the age 30 rate, regardless of how many years you work. (10-24-08)
12. Q:
How long does it take to become vested in Plan D?
A: You
become vested in contributory Plan D when
you have five years or more of County (or
combined County and reciprocal system) retirement service credit.
Vesting entitles you to a retirement allowance when you terminate
employment and you meet the minimum age and service requirements.
Members
of Plan D are eligible to receive a retirement allowance
at:
- Age
50 with at least 10 years service credit, or
- 30
years service credit, regardless of age, or
- Age
70, regardless of service credit
If
you are vested and terminate employment with Los Angeles
County you may leave your plan contributions on deposit with
LACERA. You may apply for service retirement when you reach
age 50 and reach the date on which you would have had 10
years of County retirement service credit had you remained
in service in a full-time position. (10-24-08
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Section
I: GENERAL
1. Q: What does vesting mean?
A: "Vesting" is
a term used to explain the amount of years of service credit
required for a member to receive a retirement allowance. Once vested you
are entitled to receive a retirement benefit when you meet
LACERA's minimum age and service credit 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.
Vesting requirements vary per plan.
In Plan A, B, C, or D vesting occurs when you have earned
5 years of County service credit. You are vested in Plan
E when you have earned 10 years of County service credit.
Reciprocal service credit also counts toward vesting. (7-25-06)
Click here for more vesting information
2. Q:
What is reciprocity?
A: LACERA maintains a special relationship with certain other
California public retirement systems. This relationship, known as reciprocity,
was established by statute to encourage career public service and to
protect retirement benefits earned by employees under two or more systems.
Under reciprocity, your years of service earned under the reciprocal
system will count toward meeting LACERA’s service credit requirements
for vesting and retirement.
If you
elect Plan D, your contribution rate will be based on your
age when you joined the reciprocal system.
Your retirement
allowance from both LACERA and the reciprocal system will
be based on your higher final compensation, regardless of
whether you earned that compensation as a member of LACERA
or the reciprocal system. (6-27-06)
3: Q:
I don’t know if my last job is reciprocal with
LACERA. How do I find out?
A: First check our list of reciprocal
retirement systems. If you do not know which retirement
system is associated with that job, contact LACERA with the name
of your previous employer (public agency or district,
city or town, county, school district, superintendent of schools
office, etc.), and we can determine the corresponding retirement
system. If the system is reciprocal, we will take the next
step, to inquire about your individual retirement records and
determine your eligibility for reciprocity. (4-6-07)
4. Q:
Can I withdraw my retirement contributions from LACERA
while I'm in active service?
A: No, federal law prohibits members from withdrawing any contributions
from the retirement fund. The only way to withdraw contributions is if
you terminate County service. (7-26-06)
5. Q:
Can I borrow money from my LACERA retirement plan?
A. No. Your LACERA retirement plan is a defined benefit plan
which stipulates that funds are not available to members during active
service. (5-27-08)
6. Q:
Will my monthly retirement allowance run out when I've
received the total amount I contributed to my LACERA
retirement plan?
A: No, your LACERA plan is a defined benefit plan. “Defined
Benefit” means that your benefit is a guaranteed monthly
allowance paid for the rest of your life . Your benefit is based
on your final average salary, retirement age, and years of service. (6-26-06)
7. Q: I
have dual retirement accounts as a General Member and
a Safety Member. How will this affect my retirement allowance?
A. Members
who have dual service credit as both a general and safety
member in LACERA will receive a combined retirement allowance
after retirement. The benefits for each type of service
will be added together to determine the total retirement
allowance payable.
Active
safety members who have five or more years of service as
a safety member may convert their previous general member
service to safety member service. You may convert up to a
maximum of five years of previous general service. If you
elect to convert only part of your general member service,
you must convert the most recent period of that service first
and any remaining service will continue to be credited as
general member service.
We
recommend you call LACERA at 1-800-786-6464 and speak with
a Retirement Benefits Specialist for details regarding your
individual situation. (6-10-08)
8. Q: If
I am drafted during a time of war, will I continue to receive
retirement service credit while I'm deployed?
A. If
a member is absent from service because of being drafted
(involuntarily) during a time of war, the period of absence
may be credited to the members at no cost.
If a member is absent from County
service without pay because he/she volunteered for the military
services, he/she is eligible to pay normal retirement contributions
for the period of absence and receive credit for the time.
The member must return to employment within 90 days of the
discharge date.
Whether
you are eligible to receive retirement service credit at
no cost or pay retirement contributions and receive credit
for this time also depends on other factors such
as when you began County service and your retirement plan. We
recommend you call LACERA at 1-800-786-6464 and
speak with a Retirement Benefits Specialist for details
regarding your individual situation. You can also email
your questions about benefits or retirement plans to LACERA
at welcome@lacera.com or mail your questions to: LACERA,
P.O. Box 7060, Pasadena, CA, 91109-7060. (6-16-08)
9. Q: How
does LACERA handle divorces for active members?
A: If your marriage is dissolved, the Court may order a division
or split of your monthly retirement allowance between you and your ex-spouse.
Upon retirement, LACERA will send separate checks to you and your ex-spouse
in accordance with the portions ordered in the Judgment of Dissolution. (7-14-08)
10. Q: I
am getting divorced. How will this affect my retirement
benefits?
A: If the Court determines that your LACERA benefits are community
property, a court order will direct the division of your LACERA benefits.
Please contact LACERA as soon as possible to notify us of the divorce
so that we can update your records. When the dissolution is final, LACERA
will require a conformed copy (with the court clerk's filing date stamp
and the judge's signature) of all the pages of your Judgment of Dissolution
and, if applicable, a copy of the Domestic Relations Order (DRO). Our
Legal Division will review the documents to ensure that they conform
to LACERA's plan.
Please
contact LACERA and submit these documents immediately to
prevent any delay in your retirement benefit payments. If
you are in the process of a divorce at the time of retirement,
LACERA cannot pay your retirement allowance until the judgment
is final and the court order directing the division of your
LACERA benefits is received. (3-29-07)
11. Q:
I just got divorced. What paperwork must I provide to
LACERA?
A: You must provide LACERA with a conformed
copy (with the court clerk's filing date stamp and the judge's
signature) of all the pages of your Judgment of Dissolution.
If
the judgment states a further order is required, provide
LACERA copies of a Domestic Relations Order (DRO) or a Qualified
Domestic Relations Order (QDRO). If you are unsure about
the need for additional documents, LACERA's Legal Division
will review the judgment to ascertain if an additional order
is required. (2-6-07)
12. Q:
I'm about to retire and I'm in the midst of a divorce.
Will this affect LACERA sending my monthly retirement
allowance when I'm retired?
A: Yes. If you are in the process of a divorce
at the time of retirement, LACERA cannot pay your retirement
allowance until the Judgment of Dissolution of Marriage is
final and a court order directing the community property division
of your LACERA benefits is received. (2-6-07)
13. Q:
What is a Registered Domestic Partner?
A. A domestic partnership is established when
persons meeting the criteria specified by Family Code section
297 file a Declaration of Domestic Partnership with the Secretary
of State.
In
accordance with a resolution adopted by the Board of Supervisors,
a person who meets certain qualifications as a domestic partner
is eligible for the same survivor benefits as a spouse. The
qualifications include:
- The
partnership is registered with the Secretary of State.
- Both
persons have a common residence.
- Neither
person is married or a member of another domestic partnership
that has not been terminated.
- Both
persons are at least 18 years of age.
- Either
of the following:
- Both
persons are members of the same sex.
- If
of the opposite sex, one or both of the persons are
over the age of 62.
- Both
persons are capable of consenting to the domestic partnership. (6-09-08)
14. Q:
Why do some LACERA forms list “spouse” or “domestic
partner,” while other forms don't?
A: Although we continue to update our forms
to include “spouse” or “domestic partner,” it
is possible some older forms may still show “spouse” or “other.” If
you have a question regarding a LACERA form, call 1-800-786-6464
to speak with a LACERA Retirement Benefits Specialist. Keep
in mind, domestic partners must be registered
with the California Secretary of State and meet certain other
eligibility rules. (1-3-07)
15. Q:
How do I apply for disability retirement through LACERA?
A. Members in Plans A, B, C, & D may apply
for two types of disability retirement.
1) Service-connected - Disability resulting from
or caused by an illness or injury
related to your employment.
2) Nonservice-connected - Disability resulting from
or caused by an illness or injury not related to your employment.
You
may apply for service-connected disability retirement at
any age regardless of the amount of service credit you have
earned. You may apply for non-service connected
disability retirement at any age, but you must have five
years of County retirement service credit.
You
are not eligible for a disability retirement if you are in Plan
E or if you have withdrawn your retirement contributions.
However, general members in Plans A, B, C, D, & E may
apply for disability benefits under the County´s Long-Term
Disability and Survivor Benefit Plan.
You
should fill out an application:
- When
you believe your medical condition prevents you from permanently performing
your regular job duties
- While
you are still employed
- Within
four months after you have terminated employment
- Any
time after terminating employment if (1) you have been
continuously disabled since your separation, and if (2)
LACERA´s ability to investigate your application
has not been impaired because of a delay in filing your
application (5-27-08)
16. Q:
I have been granted a Disability Retirement by the Board
of Retirement. Can I exhaust my vacation/sick time before
my retirement allowances begin?
A: You may use any remaining sick time and
4850 benefits, but not vacation time. Payment in full for any
remaining holiday or vacation time will be included in your
termination pay. Coordinate with LACERA and your department’s
payroll office to make sure your County sick time and 4850
benefits are exhausted before your LACERA allowance begins. (8-7-06)
17. Q:
Does LACERA have retirement calculators on the web site?
A: Yes, we do.
The
calculators are a great help in making retirement decisions.
(Note: The LACERA calculators only provide an estimate. For
an actual cost contact LACERA.) (8-1-06)
18. Q:
Who can register for My LACERA?
A. Only active
and retired members can register. Currently, access for deferred
members and spouses is not available. You can access the My LACERA icon from lacera.com
to register. If you are an active member, you can create
your preliminary Retirement Benefit Estimate on My LACERA. The
Retirement Benefit Estimate feature will provide a personalized
estimate (based on your actual data) of the benefits you will
receive when you retire. You can also read more about this
feature at About My LACERA. (6-11-08)
19. Q:
How much money will I receive when I retire?
A: You
can find out how much money you will receive by creating
your own preliminary Retirement Benefit Estimate online
at My LACERA. Once you register on My LACERA, the Retirement
Benefit Estimate feature will provide a personalized estimate
of the benefits you will receive when you retire. Look
for the My
LACERA icon on lacera.com. You can also read
more about this feature at About
My LACERA. You may also request an official
retirement estimate by calling us at 1-800-786-6464. (6-23-08)
20. Q: How
can I get a Retirement Benefit Estimate?
A: You can create your own preliminary Retirement Benefit Estimate
online at My
LACERA. Once you register on My LACERA, the Retirement Benefit
Estimate feature will provide a personalized estimate of the benefits
you will receive when you retire. You can access the My LACERA icon from
lacera.com or on the left side bar of each web page. You can also read
more about this feature at About
My LACERA.
You can call LACERA and request a
Retirement Benefit Estimate at 1-800-786-6464. (6-04-08)
21. Q:
When will I get my annual benefits statement?
A: Benefit
statements are prepared on the 15th of the month following
your birthday month. After your yearly benefits have been calculated,
it normally takes about 2-3 weeks for the statement to be printed
and mailed. So those born in June should expect to receive
their statements around the end of July or early August. Those
born in July should get their statements around the end of
August or early September, etc.
Also,
once you register on My
LACERA, you can review your Annual Benefit Statement
online at any time. Look for the My LACERA icon throughout
lacera.com to register. (5-12-08)
22. Q: Can
I change plans?
A: If you are a Plan D or Plan E member, yes, you may change
plans. This change is called a plan transfer. (Members of Plans A, B,
and C cannot change plans.)
For
a transfer from Plan E to Plan D, you have a choice: either
an "open
window" transfer or a "prospective" transfer.
The costs and features are different for each type of transfer,
and your decision will depend on your individual circumstances
and retirement goals. First, we suggest that you review the
FAQs and try the Transfer
Calculator to estimate and compare your costs
for each type of transfer. Then, if you have any questions,
or you are ready to request your transfer, call us at 1-800-786-6464
for more information.
A
transfer from Plan D to Plan E is a "prospective" transfer.
The change is effective immediately, and retirement contributions
will no longer be deducted from your paycheck. Be aware that
you will not be eligible for any active member death or disability
benefits from LACERA. Also, you cannot transfer back to Plan
D for three years. At retirement, your benefit will be a
combined allowance based on your Plan E and Plan D service
credit. (3-29-07)
23. Q:
How much will it cost for an Open Window Transfer from
Plan E to Plan D?
A: Visit the Transfer
Calculator for an instant estimate of your transfer costs.
You may also request an Open Window Plan Transfer package that includes
a Request for Cost Notification Form. Submitting this request does not
obligate you to initiate a transfer; it is merely a request to receive
personalized cost information. Within approximately 60 days from receipt
of your request, LACERA will send you a Cost Notification Letter detailing
your cost to complete an Open Window Transfer to Plan D. The letter will
include the itemized cost of purchasing credit for your service prior
to membership in LACERA, and a Payment Contract. Verification of your
prior service and the computation of the cost of your service credit
may affect the time required to provide your letter and contract. If,
after reviewing your Cost Notification Letter, you decide to proceed
with the transfer, you must return a signed Payment Contract to LACERA.
See Open
Window Transfer Plan (6-26-06)
24. Q:
I am considering a transfer from Plan E to Plan D and
buying my years of County service. How can I pay for
it?
A: LACERA now accepts payments from a variety of sources. You
may pay for any type of plan transfer, redeposit, conversion, or service
credit purchase with funds from any of the following sources:
- Transfer
from your LA County 401(k) Savings Plan or Horizons 457
Plan, even while you are still employed (before-tax dollars
only)
- Rollover
from a 401(k), 403(b), 457, or other plan sponsored by
a previous employer (before-tax dollars only)
- Rollover
from your Traditional IRA, not ROTH IRAs (before-tax dollars
only)
- Personal
check, which may be money from your checking or savings
account, cash from home equity, etc. (after-tax dollars)
- Payroll
deductions (before-tax or after-tax dollars) (3-29-07)
25. Q:
If I transfer to Plan D, what is the difference between
buying Additional Retirement Credit (ARC) and buying
my Plan E time?
A. We have
a special section on lacera.com entitled LACERA Career Opportunities
Section where we list jobs that are open for everyone to apply.
Our Career Opportunities link is located at the left hand navigation
bar. You can access this section with the “CAREERS” icon
on the lacera.com home page. (7-14-08)
26. Q:
How can I find out about job opportunities with LACERA?
A. We have
a section on lacera.com entitled LACERA
Career Opportunities Section where we list jobs
that are open for everyone to apply. Look for the Opportunities tab. (7-14-08)
27. Q:
How can I obtain a job application for a job opening
at LACERA?
A. Go to the LACERA
Career Opportunities Section on lacera.com. You
may apply online for any open position by clicking on the job
title you are interested in and clicking on the “Apply” button
on the job announcement. This application can be saved and
used to apply for additional or future job openings. You must
have access to email to apply online. If you do not want to
apply directly online, you can access the Job Application in
PDF format on the LACERA Career Opportunities Section web page.
If you are interested in a job that
is not currently being recruited for, you can submit a Job
Interest Card by clicking on the Job Descriptions link.
Locate the job you want, click on the job title, then click
on the "Email me when this position opens" link. (7-10-08)
28. Q:I
have service in Plan E and Plan D. How does that affect
my retirement?
A: When you retire, you will have service credit
in both plans (double accounts), so your retirement benefit will
be a combined allowance. First, your retirement allowance under
each plan will be calculated separately, based on the service
credit you earned under that plan. Then, the two amounts will
be added together to determine your total monthly allowance.
You
may retire from each plan when you meet the minimum retirement
age (age 50 for Plan D; age 55 for Plan E) and service credit
requirements. If you retire from Plan D and you are under
55, your Plan E retirement benefits automatically become
effective on the date of your 55th birthday. LACERA will
send you a letter one month before your 55th birthday to
notify you regarding the effective date of your Plan E retirement
benefit payments. (10-24-08)
29. Q:
What is a monthly retirement allowance?
A: Your monthly
retirement allowance is the monthly retirement benefit (monthly
amount of money) you will receive after you retire. The amount
of your retirement allowance is based on three factors:
- Age at Retirement
- Years of Service (Service Credit)
- Final Compensation (9-11-08)
30. Q:
How can I find out how much service credit I have?
A: You
can visit My
LACERA to find out how much service credit you
have. My LACERA is a web feature that provides
you with secure 24-hour access to your personal retirement
benefit information including your retirement plan and contribution
rate, the total amount of your contributions, annual benefit
statement, and recap of your recent LACERA interactions. You
can also call LACERA at 1-800-786-6464 and speak with a Retirement
Benefits Specialist to find out how much service credit you
have. (10-24-08)
31. Q:
What is the Transfer Calculator and the ARC Calculator?
A: Our
online Transfer
Calculator is a web feature that will give you
an estimate of the cost associated with a plan transfer. You
can use the calculator to project:
- Your
monthly Plan D contribution rate if you transfer prospectively
from Plan E to Plan D.
- The
Cost to purchase and convert some or all of your Plan E
service credit for a Prospective Transfer.
- The
cost of an Open Window Transfer from Plan E to Plan D (requires
purchase of all your previous years of Plan E service)
ARC is
credit that may be purchased to increase your service credit
total. It is not based on actual employment. Active employees
in all LACERA plans who have at least five years of County
service credit are eligible to purchase ARC. Our online ARC
Calculator will estimate the cost for purchasing
one to five years of ARC and it will project the monthly
retirement allowance increase you will receive. (10-24-08)
(Back
to the top)
Section
II: SURVIVOR BENEFITS
1. Q:
If I die while I am an active County employee, will my retirement
benefits go to my spouse and surviving children?
A. For
active members in Plans A, B, C, and D who die while in County
service, death benefits in the form of a lump sum or continuing
monthly allowance may be payable depending on your length of
service and whether the death was service- or nonservice-connected.
A
surviving minor child may be eligible for benefits if the
member does not have an eligible surviving spouse.
Plan
E - LACERA does not provide death
benefits for active members in Plan E.
For
details see Pre-Retirement
Death Benefits or contact LACERA at 1-800-786-6464
and speak with a Retirement Benefits Specialist to discuss your
individual situation. (6-11-08) `
2. Q: I
am the surviving spouse of an active member who died while
in County service. Am I entitled to any survivor benefits?
A: If
you are a surviving spouse of an active Plan A, B, C,
or D member who dies while in County service, you may
be eligible for death benefits in the form of a lump
sum or continuing monthly allowance depending on the
member’s length of service and whether the death
was service- or nonservice-connected. If the member's
death was service-connected, you must have been married
to the member prior to the injury or illness which resulted
in death.
If
the death is nonservice-connected and the Plan A, B, C, or
D member is vested with five years of County employment, survivor
benefits are payable. There are no minimum years of service
required to receive the lump-sum death benefit. (1-3-07)
3. Q: If
I am not married and don't have any children, who can I
designate as my beneficiary when I retire?
A: You may name anyone you wish to receive the $5,000 death
benefit, and you may change that beneficiary designation at any time,
even after you retire. If you wish to leave a monthly allowance to someone
other than a spouse, domestic partner, or minor child, you may elect
Retirement Option 2, 3, or 4. These options pay you a reduced allowance
during your retirement years. Then, after your death, your beneficiary
would receive a monthly allowance for the rest of his or her life. If
you would like to discuss your individual circumstances, our Retirement
Benefits Specialists can assist you. Call 1-800-786-6464 or visit our
office in Pasadena for a one-on-one consultation. (3-29-07)
4. Q:
How long do I have to be married before my spouse becomes
eligible for survivor benefits on my LACERA retirement
plan?
A: A surviving spouse is eligible
for survivor benefits if he or she married the member at least
one year prior to the member’s date of retirement. As of
August 26, 2003, a domestic partner is eligible
for survivor benefits if he or she registered as a domestic partner
at least one year prior to the member’s date of retirement. (1-3-07)
5. Q:
Does Plan E provide survivor benefits?
A: There are no LACERA pre-retirement continuing
survivor benefits under Plan E; however, Plan E members are covered
by the County's Long-Term Disability and Survivor Benefits Plan. All
LACERA retirement plans, including Plan E, provide a
$5,000 post-retirement lump-sum death benefit. LACERA
also provides post-retirement continuing Plan E survivor benefits,
which vary according to the retirement option selected. For additional
information, refer to your Plan E Summary Plan brochure. (1-3-07)
6. Q:
After I retire, can I provide my beneficiary 100% of my
retirement allowance?
A: If you select the Unmodified+Plus option
when you retire, you can provide your eligible spouse, domestic
partner, or beneficiary a customized percentage of your reduced
retirement allowance. If you are in Plan A, B, C, or D, you can
provide your eligible beneficiary a customized percentage between
66% and 100% of your reduced allowance. If you are in Plan E, you
can provide your eligible beneficiary a customized percentage between
56% and 100% of your reduced allowance.
For
additional information, call 1-800-786-6464 and speak with
a LACERA Retirement Benefits Specialist. (7-10-08)
(Back
to the top)
Section
III: SOCIAL SECURITY
1. Q:
What is the Social Security offset and who does it affect?
A: Members
who were employed by the County prior to 1983 are subject to
the offset, which is a reduction in their LACERA retirement allowance
for each year of their County service that was also covered by
Social Security. (1-3-07)
2: Q:
How does my LACERA benefit affect my Social Security benefit?
A: If you receive a LACERA retirement allowance
AND a Social Security benefit, your Social Security benefit will
be calculated by the less favorable “Windfall Elimination
Provision” (WEP) formula. This results in a lower Social
Security benefit than you would have received if you were not
eligible to receive a LACERA pension. The formula varies, based
on your years of Social Security-covered employment, and does
not apply at all if you have 30 years or more of Social Security
coverage. For more information, visit the Windfall
Elimination Provision page in the Active Member
section. (4-6-07)
3. Q:
I am in Plan E. How will the Social Security offset affect
my LACERA retirement benefits?
A. If you are
in Plan E, a percentage of your estimated Social Security benefit
will be subtracted from your retirement allowance, based on the
total number of years and months of County service covered by
Social Security.
LACERA will use actuarial tables to
compute your Social Security benefit offset and your retirement
allowance. If you retire at or after age 62 and would like
LACERA to use the actual amount of your Social Security benefit
(rather than an amount based on actuarial tables) to compute
your Social Security benefit offset and your retirement allowance,
you must provide LACERA with information documenting your actual
Social Security benefit. You must provide the documentation
within six months after your retirement. LACERA recommends
that you do this. (6-10-08)
(Back
to the top)
Section
IV: PLAN E ELECTIVE COLA
1. Q:
What is Plan E Elective COLA?
A: Elective
COLA is a provision that offers you the opportunity to purchase a cost-of-living
benefit for the portion of your allowance that is based on service credit
earned prior to June 4, 2002 (this service credit is not eligible for
Automatic COLA). If you purchase Plan E Elective COLA, you will become
eligible to receive a cost-of-living benefit on a greater portion of
your retirement allowance.
2. Q:
Are there situations in which I would not benefit from
Plan E Elective COLA?
A: Yes. Your cost for Plan E Elective
COLA is based, in part, on actuarial assumptions for
life expectancy and annual inflation. If you do not reach
the actuarially-projected life expectancy, or inflation
is lower than the assumption, you may not recover your
total cost. (8-1-06)
3. Q:
How much Plan E Elective COLA may I purchase?
A: You may purchase Plan E Elective
COLA for some or all of your eligible Plan E service
credit earned prior to June 4, 2002. (8-1-06)
4. Q:
What types of funds may I use to purchase Plan E Elective
COLA?
A: You may pay your contract with
before-tax dollars from:
- Rollover
from your 401(k)*, 457**, IRA, or other tax-qualified plan
- Monthly
payroll deductions
- Combination
of rollover AND monthly payroll deductions
*The
amount an active employee may roll over from the County’s
401(k) Savings Plan is limited by age, years in plan, and contribution
type. Contact Great-West at 1-800-947-0845 to determine your
eligibility.
The
Pension Protection Act of 2006 permits LACERA to accept rollovers
by active employees from the County’s
Horizons 457 Plan (effective August 17, 2006). (10-24-06)
5. Q:
How do I calculate the cost to purchase Elective COLA for
Plan E?
A. The
cost to purchase Plan E Elective COLA varies depending on your
individual situation and actuarial factors. Please contact a
Retirement Benefits Specialists at 1-800-786-6464. We will prepare
a cost calculation and you will not be obligated to start a payment
contract. If you decide to proceed with the purchase of Plan
E Elective COLA, we will then prepare a payment contract for
your signature. (5-28-08)
(Back
to the top)
Section
V: TERMINATING EMPLOYMENT
1. Q: What is a deferred
member?
A: A
deferred member is a vested LACERA member who terminates County
or outside district employment and leaves his or her plan contributions
on deposit with LACERA. Contributory members (Plan A, B, C, or
D) are vested with five or more years of County (or County and
reciprocal) retirement service credit, Plan E members are vested
with ten years of County service retirement credit. Deferred
members may apply for a LACERA retirement allowance upon meeting
the minimum age and service credit requirements set forth in
their respective retirement plans. (1-3-07)
2. Q: Can
I quit working now and defer my retirement benefits?
A: If
you are vested in Plan A, B, C, or D (5 years
of service) and you quit working and leave your contributions
on deposit; they will continue to earn interest and you will
automatically become a deferred member. If you
are not vested in Plan A, B, C, or D (fewer
than 5 years of service) and you quit working and leave your
contributions on deposit; they will continue to earn interest.
You may become eligible for future retirement benefits if you
return to County service, or enter employment covered by a reciprocal
retirement system within six months.
IMPORTANT:
If you withdraw your deferred contributions and interest,
you will forfeit all rights to future retirement benefits
from LACERA.
If
you are vested in Plan E (10 years of service
credit), quit working and leave your contributions, you automatically
become a deferred member. If you are not vested
(fewer than 10 years of service) and terminate employment as
a Plan E member, you are not entitled to receive any
retirement benefits from LACERA. However, if you return
and elect Plan D, you are eligible to purchase and receive
Plan D credit for your previous non-vested Plan E service.
Remember
to keep LACERA informed of address changes while you are on
deferred status. (6-23-08)
3. Q:
What happens to my retirement contributions after I terminate
from County service?
A: If you are a member of Plan A, B, C or D,
and you leave County service, you have several options:
If eligible,
you may retire, or if you are not eligible to retire, but are
vested:
- Your
retirement will be automatically deferred or postponed, and
you may retire when you meet the minimum age and service
requirements.
- Your
contributions will remain on deposit and continue to earn
interest. If you become a member of a reciprocal retirement
system, visit the reciprocity
page for additional information.
If you are
not vested:
- You may
leave your contributions on deposit to earn interest until
you withdraw them.
- You would
not be eligible for a future retirement benefit unless you
return to service or become a member of a reciprocal retirement
system.
- You may
withdraw your contributions and earned interest.
Be advised that taking a withdrawal terminates
your membership and you give up all rights to future
retirement benefits from LACERA, including disability
benefits. (7-17-08)
4. Q:
If I terminate and leave my contributions on deposit, when
am I eligible for LACERA retirement benefits?
A: If you are a vested member
of Plan A, B, C, or D (five years of County retirement
service credit) and terminate County service prior to
meeting age and service credit eligibility for retirement,
you may apply to receive your deferred
retirement allowance when you reach age
50 and reach the date on which you would have earned
ten years of service credit as a County employee.
If
you are a vested member of Plan E (ten years of County service
retirement credit), and terminate employment, you may apply
for your retirement allowance when you reach age 55. (9-25-06)
5. Q:
At what age is distribution mandatory for a deferred member?
A: LACERA is required by law to begin paying
a deferred retirement allowance to any deferred member (who is
not a member of a reciprocal retirement system) on April 1 of
the year following the year in which the member attains age 70-1/2.
For additional information, refer to your Summary Plan Description
brochure or contact a LACERA Retirement Benefits Specialist at
1-800-786-6464. (1-3-07)
6. Q
: If I terminate from the County, can I roll my LACERA
contributions over to an IRA?
A: Yes, but choose carefully. CAUTION: If you elect to withdraw
or roll over your contributions and interest, you will forfeit (give
up) your right to any future retirement benefits from LACERA, including
disability and retiree health care benefits.
If you choose
to withdraw your contributions and interest when you terminate,
you may elect to roll over to an IRA or other qualified employer
plan. A surviving spouse or ex-spouse may also elect a rollover
of the member's contributions and interest. Tax laws governing
rollovers are complex, so consult your tax advisor for detailed
information. Note:
Certain restrictions may apply; check with the Plan Administrator. (12-20-06)
7: Q: How
do I roll over an existing retirement account into a 457
Horizons account?
A: Contact your financial institution or Great West at 1-800-947-0845. (3-3-08)
(Back
to the top)
Section
VI: FINAL COMPENSATION
1. Q:
What is final compensation?
A: Final compensation is one factor used to determine a member's
monthly retirement allowance. It is an average of the member's highest
monthly pensionable income during any one-year or three-year period.
Generally, if you are a member of Plan A, B, C, or D, your final compensation
will be based on one year (12 consecutive months).
If you are
a Plan E member, your final compensation will be based on three
years (either 36 consecutive months or three separate 12-consecutive-month
periods). (7-18-06)
2. Q:
Are overtime pay and excess vacation pay included in final
compensation?
A: No, overtime is not considered “pensionable
earnings;” therefore it is not included in final average
compensation. The amount you receive upon termination for unused
vacation and sick leave, also called “termination pay,” is
not pensionable earnings. Active employees may be eligible to
receive compensation for excess vacation, holiday, or sick leave
(also called “buy-back”); up to certain maximums.
This compensation is included in your final compensation.
If you have
questions about buy-back eligibility, contact your personnel/human
resources department. You can learn more about how to maximize
your final compensation by attending LACERA's Pre-Retirement
Workshop. (7-18-06)
3. Q: Which pay items are pensionable under the Ventura Decision?
A: A list of pensionable items is located within our retirement
calculator section. Click
here to see the Ventura Decision pay items. (6-26-06)
You
may also request an official retirement estimate by calling
us at 1-800-786-6464. (6-04-08)
4. Q:
How much sick leave will I be paid for if I terminate
County service?
A: If you are a
permanent full-time employee who terminates with at
least five years of continuous service, the County
will pay you for ("buy back") accumulated
sick leave at full pay to a maximum of 720 working
hours, or in the case of employees assigned to a 56-hour
workweek schedule, to a maximum of 1,080 working hours. The 720 hours and 1080 hours stem from 50% of the maximum 1440 hours and 2160 hours. (8-06-08)
Note:
Compensation for unused leave which is paid to the employee
upon termination (also known as "termination pay")
is not included in final compensation and therefore, not pensionable. (4-3-08)
(Back
to the top)
Section
VII: PLANNING FOR RETIREMENT
1. Q:
Why should I attend a Pre-Retirement Workshop?
A: Pre-Retirement
Workshops provide
the essential information you need to know to maximize your retirement
benefits. Each pre-registered attendee receives a personalized estimate
of their retirement benefits, along with recommendations on the most advantageous
retirement dates. All members within five years of retirement are strongly
encouraged to attend a Pre-Retirement Workshop. Call 1-800-786-6464 to
reserve your spot. (6-27-06)
2. Q:
How can I determine my most advantageous date to retire?
A: If you are within
five years of retirement, register for a free LACERA Pre-Retirement
Workshop. You'll receive a personalized estimate of your retirement
benefits, including customized recommendations on selecting the retirement
date that is most advantageous for you. At the workshop, you'll be able
to review your estimate, one-on-one, with a LACERA Retirement Benefits
Specialist, who can offer recommendations on how to maximize your personal
retirement situation. Call 1-800-786-6464 to RSVP. (9-14-06)
3. Q:
What is the minimum age I can begin receiving a retirement
allowance?
A: General
members of Plans A, B, C, or D are eligible to
receive a retirement allowance at:
- Age 50 with at least 10 years service
credit, or
- 30
years service credit, regardless of age, or
- Age
70, regardless of service credit
General
Members of Plan E are eligible to receive a retirement
allowance at:
- Age
55 with at least 10 years service credit
- Age
70, regardless of service credit
Safety
members of Plans A or B are eligible to receive
a retirement allowance at:
- Age
50 with at least 10 years service credit, or
- 20
years service credit, regardless of age (1-3-07)
4. Q:
I plan to retire at age 50. When and how should I contact
LACERA to begin the process?
A: If you are in Plan A, B, C,
or D, you are age-eligible to retire at 50. If you are in Plan E, you
are not eligible to retire until you reach age 55. If you are 50, you
may choose to terminate and defer your retirement until you are 55.
We suggest you attend a Pre-Retirement
Workshop at least five years prior to your
retirement, and again two years prior.
Four to six months before you plan to retire, contact LACERA for a Retirement
Estimate. This estimate will show your personal retirement options in
detail. Plan to visit LACERA to discuss your retirement options with
a Retirement Benefits Specialist. You may elect your retirement option
up to 90 days before your retirement date (no sooner).
If you choose to apply in person at LACERA's Public Counter,
you will need to bring the following items: your signed Election
to Retire form, original marriage or domestic partnership certificate,
original birth certificate for your eligible spouse or domestic partner
if you elect Option 2, 3, 4 or Unmodified+Plus, and your checkbook (to
establish Direct Deposit for your retirement allowance). (11-2-07)
5. Q:
Am I eligible to retire now, or am I too young? Can I stop
working now and then start receiving my retirement benefits
in a few years?
A: Each LACERA
plan has minimum age and service credit requirements. See the
Retirement Eligibility page for your plan details and try the
Retirement Calculator to compare benefit estimates based on different
ages and years of service credit. You need five years of
service credit to be vested in Plans A, B, C, and D and ten
years of service credit to be vested in Plan E. Vesting
means that you will be eligible for a future retirement benefit
even if you leave County employment before you retire. If you
are vested, you may “defer” (postpone) your retirement
and retire at a later date, subject to the requirements for deferred
members. (4-6-07)
6. Q:
What Retirement Options do I have when I retire?
A: When
you get ready to retire and meet the requirements, you
may select from several Retirement Options
for your retirement allowance:
- Unmodified: Provides
member the highest monthly retirement allowance available.
- Unmodified+Plus: Allows
member to provide survivor a customized percentage of member's
reduced allowance.
- Option
1: Allows member to provide a single
lump-sum payment to beneficiary. Member receives slightly
reduced unmodified allowance.
- Option
2: Allows member to provide survivor
100% of member's reduced allowance.
- Option 3: Expanded beneficiary
eligibility. Member receives reduced unmodified allowance.
Beneficiary cannot be changed after retirement.
- Option
4: Can be customized to provide for
multiple beneficiaries. Member receives reduced unmodified
allowance. (8-7-06)
7. Q:
How can I find out when LACERA presents Pre-Retirement
Workshops in different areas?
A. Check our Pre-Retirement
Workshop Calendar to see when workshops are scheduled
in different areas. To reserve a space in the Pre-Retirement
Workshop, call 1-800-786-6464. (5-27-08)
8: Q: When
will a LACERA representative be visiting the High Desert
Health System again?
A: A Retirement Benefits Specialist from LACERA will be available
at the benefit table in your cafeteria conference room to answer any
questions you have on the 4th Thursday of every month from 11 a.m. to
4 p.m. (3-18-08)
9. Q:
Are the Pre-Retirement Workshops held on Saturdays?
A. Yes.
LACERA offers Pre-Retirement Workshops on the first Saturday
of each month. Check our Pre-Retirement
Workshop Calendar to
see which Saturdays are scheduled. To reserve a space
in the Pre-Retirement Workshop, call 1-800-786-6464.
Attend a workshop and learn how to maximize your retirement. (5-12-08)
10: Q: If
I retire on or before March 30 will I be eligible for the
cost-of-living adjustment on April 1?
A: Yes. Many
members take advantage of the April 1 COLA by retiring on or
before March 30. It is best to consult with a Retirement
Benefits Specialist as factors like birth date and age are also
important in choosing a retirement date. (3-3-08)
11. Q:
What documents do I need to apply for retirement?
A: There
are several documents you will need to initiate the process of
retirement. First, you should contact LACERA six months before
you plan to retire at 1-800-786-6464 and request a Retirement
Benefit Estimate. Or, you can create your own preliminary
Retirement Benefit Estimate if you register on MY LACERA at lacera.com.
This estimate will show your personal retirement options in detail.
Plan to visit LACERA to discuss
your retirement options with a Retirement Benefits Specialist. You
will need to bring the following documents to apply for retirement:
your signed Election to Retire form, original birth
certificate for your eligible spouse or domestic partner
if you elect Option 2, 3, 4 or Unmodified+Plus, and your
checkbook (to establish Direct Deposit for your retirement
allowance). We also suggest that you attend a Pre-Retirement Workshop at LACERA
where we will review all the forms and information necessary
to help you plan your retirement.
Another good reference for you is our The
Process of Retiring web page which includes
a Checklist for Retirement Planning to
review all the necessary steps in applying for retirement. (6-11-08)
12. Q:
When I become eligible to retire, will LACERA automatically
retire me?
A. No.
You must contact LACERA at 1-800-786-6464 to initiate your application
for retirement. LACERA does not automatically retire employees.* We recommend you contact LACERA
to attend a Pre-Retirement Workshop five years prior to retirement.
Another source of information about the retirement process is
our The
Process of Retiring web page. (6-10-08)
*One exception is members with double accounts. They may retire at age 50 for Plan D and then be automatically retired at 55 for Plan E.
13. Q: If
I provide a certified copy of my marriage certificate,
will I get it back?
A: LACERA
does require original certified marriage certificates,
domestic partner registration, and birth certificates for
dependent children that have been recorded by the county,
state, or country of residence for our files. Once we receive
your original certificates, we will scan copies into our
files and return the original certificate to you in the
mail. (5-12-08)
14. Q:
Should I report for work on my retirement date?
A. No. Don't report to work on your retirement
date. For example, if your effective retirement date is September
10, you don't have to report to work on that day. You are retired! (5-12-08)
15. Q:
Once I retire, can I return to work for the County?
A. An eligible retiree may return to work for the County for
a period of up to 120 days (960 hours in any 12-month period) and continue
to receive his/her retirement allowance. During this post-retirement
employment, however, the member will not accrue any additional LACERA
pension benefits, nor will the member or the employer pay contributions
for this service.
There
is a 90-day waiting period following retirement for retirees
under Normal Retirement Age who are returning to work.
Normal
Retirement Age for members of LACERA:
- Age
57 for general contributory members
- Age
65 for general noncontributory members
- Age
55 for safety members
IRS
penalties may apply to retirees under age 59.5 who have not
had a "bona fide" separation (90-day waiting period)
from service and are engaged in post-retirement work with the
County. For information pertaining to your individual situation,
consult with a professional advisor; LACERA does not offer
tax or legal advice. (5-27-08)
16. Q:
I'm going to retire soon, and I would like information
about the health care plans available to retired members.
For
a list of current LACERA-Administered Retiree Health Care information
online, visit our Retiree Health Care section. (3-3-08)
17. Q:
I am an active County employee, and I do not carry my wife
on my health insurance. If I retire, can I add her as a
dependent on my LACERA-Administered Health Care Plan?
A. Yes. Once you retire, you can enroll in a
LACERA-Administered Health Care Plan and include your spouse
on your health care coverage. Eligible dependents for your LACERA-Administered
Health Care Plan include:
- Your
spouse
- Your
eligible domestic partner
- Your
unmarried natural or legally adopted children or stepchildren,
under 19 or up to 23 who are enrolled as full-time students
and depend on you for financial support
- Your
unmarried dependent children over 19 who are incapable of
self-support due to a physical or mental handicap and meet
specific requirements (6-09-08)
18. Q:
I'm an active County employee and will turn 65 in a few
months. Should I apply for Medicare?
A. If you are still an active County employee at age 65, you
should contact the County Employees Benefits Office at (213) 388-9982
to inquire about Medicare eligibility and enrollment. If you retire at
age 65 and you are eligible for Medicare, you can enroll in a LACERA-administered
Medicare Plan. (5-27-08) |
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1. Q: What is disability retirement?
A: Disability retirement is a category of retirement that may be granted by the Board of Retirement when it determines a member is permanently incapacitated, either physically or mentally from
performing his or her job duties. (12-6-07)
2. Q: Are there different types of disability retirement?
A: Yes. There are service-connected and nonservice-connected disability retirements. Service-connected disability retirement is based upon a disability caused by an illness or injury related to the member's employment. Nonservice-connected disability retirement is based upon a disability caused by an illness or injury not related to the member's employment. (12-6-07)
3. Q: Do all LACERA plans include disability retirement?
A: No. Only contributory plans A, B, C, and D include disability retirement; members of those plans who meet certain eligibility requirements may apply for disability retirements. Plan E does not include disability retirement. Information on applying for disability retirement is available in the Benefits section. Disability brochures and forms are available on the Brochures & Forms page. (12-6-07)
4. Q: How does my Prospective Transfer to Plan D affect my eligibility to apply for disability retirement?
A: If you transfer prospectively to Plan D you are eligible to apply for a service-connected disability retirement (regardless of the date of injury) when either of the following conditions is met:
- Two continuous years of active service completed as an active Plan D member after your most recent effective date of transfer (service without medical leave specifically related to a pre-existing disability, injury, or disease).
- If service has not been continuous, five years of service credit earned as an active Plan D member after your most recent effective date of transfer.
To apply for a nonservice-connected disability retirement, Plan D members must have earned a minimum of five years of County service credit. The credit may include Plan D, Plan E, or reciprocal service credit, but must include one of the Plan D service credit options listed above. (12-6-07)
5. Q: How does my Open Window Transfer to Plan D affect my eligibility to apply for disability retirement?
A: Under an Open Window Transfer, you remain in Plan E until your transfer contract is paid in full. Your eligibility to apply for disability retirement begins on the first day your Open Window transfer contract is fulfilled. (12-5-07)
6. Q: I transferred prospectively from Plan E to Plan D. Am I permitted to purchase Plan E time to meet the two-year or five-year eligibility requirement to apply for a service-connected disability retirement?
A: No. A member who has transferred prospectively to Plan D must complete two continuous years of active service after his or her most recent effective date of transfer date or earn five years of retirement service credit under Plan D; the time cannot be purchased. (12-6-07)
7. Q: How is "active service" defined?
A: Government Code Section 31494.5 (g) defines active service as "time spent on active, on-the-job performance of the duties of a full-time or part-time position and on any authorized paid leaves of absence; provided, however, that any authorized paid leave of absence or part-time service shall not constitute active service if the leave of absence or part-time service is necessitated by a preexisting disability, injury, or disease." (12-6-07)
8. Q: How is "pre-existing" defined in matters relating to service-connected disability retirement?
A: Pre-existing refers to any disability, injury, or disease that existed prior to the date a member transferred prospectively from Plan E to Plan D. (12-6-07)
9. Q: In service-connected disability cases, who determines if a leave of absence or part-time service is necessitated by a preexisting disability, injury, or disease?
A: The determination is made by the Board of Retirement, based upon evidence presented by the employer and by the member, if requested by the board. (12-6-07)
10. Q: Does the Worker's Compensation process affect the granting of a Disability Retirement?
A: No. The Board of Retirement makes independent findings; its decision whether or not to grant a member's disability retirement application is completely independent of the Worker's Compensation process.
11. Q: Are any disability benefits available to Plan E members?
A: Plan E has no LACERA disability benefits. The County Long-Term Disability Plan (LTD) is designed to provide certain disability benefits to Plan E general members. For information on LTD, call the County Employee Hotline at 213-388-9982. |
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FAQs on General ARC, Contributory ARC, and Plan E ARC (6-29-07)
SECTION I: GENERAL ARC INFORMATION
1. Q: What is Additional Retirement Credit (ARC)?
A: ARC is credit that may be purchased to increase your service credit total. It is not based on actual employment.
(6-15-07)
2. Q: What are advantages of purchasing ARC?
A: Adding years of service credit by purchasing ARC will increase your total years of service credit. Since years of service credit is one of the factors used to calculate your retirement allowance, increasing your service credit through ARC will increase your monthly retirement allowance.*
*In certain circumstances, this may not apply to a service-connected disability. For more information, call 1-800-786-6464.
3. Q: Are there limitations to ARC?
A: Additional Retirement Credit (ARC) adds to your total retirement service credit for purposes of calculating your retirement allowance only. However, regardless of ARC, the retirement allowance of a contributory member cannot exceed 100 percent of his or her final compensation. The allowance of a Plan E member cannot exceed 80 percent of final compensation.
ARC does not apply when calculating any of the following:*
- Minimum eligibility requirements for a service or disability retirement
- Retiree health care benefits
- Cancellation of contributions for members who attain 30 years of service credit
*Disability retirement and 30-year cancellation of contributions do not apply to Plan E.
4. Q: Who is eligible to purchase ARC?
A: An active member in any LACERA retirement plan with at least five years of actual County service may purchase ARC. County service may include Plan E service, dual account service (safety and general), and PERS transfer credit. Reciprocal service and purchased temporary time are not included. Deferred members are not eligible to buy ARC. (1-9-09)
5. Q: How much ARC may I purchase?
A: The minimum ARC purchase is one year;
the maximum purchase is a total of five years under any
plan or combination of plans. For example, suppose you
buy three years of ARC while you’re a member of Plan
E and later transfer to Plan D. The maximum amount of ARC
you would be eligible to purchase in Plan D would be two
years. In that case you would have purchased a total of
five years of ARC, which is the maximum purchasable amount.
(6-29-07)
6. Q: How is the cost of ARC calculated?
A: The cost of ARC is calculated using a "present value formula," which represents the value of the increased retirement income you will receive during retirement, computed in today’s
dollars. In other words, the member pays the full actuarial
cost of the additional future retirement benefit. By law,
ARC cannot place any additional financial burden on the
retirement system. The formula factors in your current
age, retirement plan, and salary, along with actuarial
assumptions for salary increases, age at retirement, and
life expectancy.
Using
the online ARC Calculator in the lacera.com Benefits section
will enable you to get an idea of your cost to purchase ARC.
The calculator allows you to enter different determining
figures to decide if you’d like to proceed with an
ARC purchase. To determine the exact cost of your ARC purchase,
you must request an official Cost Notification from LACERA.
(6-15-07)
7. Q: What types of funds may I use to purchase ARC?
A: Under federal law, ARC may be purchased with any of these types of funds:
- Payroll Deductions (using before or after-tax dollars)
- Qualified Plans: 401(k)/401(a)/KEOGH
- 457 Plan Fund Transfer: In-Service or After Termination
- IRAs: Non-Roth/Non-After Tax
- 403(b)
- After-Tax Dollars
LACERA does not accept termination pay for the purchase of ARC.
8. Q: What payment options are available?
A: You have a choice of three payment options: lump-sum payment, payroll deductions, or a combination of both.
- Lump-Sum Payment: a single payment for the total cost of your ARC, including interest calculated through the contract expiration date.
- Payroll Deductions: automatic monthly deductions from your paycheck, determined by dividing the total dollar amount of your contract by the term (number of months) of your contract. Interest is calculated over the term of the contract; therefore, the total amount you pay through payroll deductions is greater than it would be through a lump-sum payment. You designate whether you want the deductions taken on a before or after-tax basis.
- Combination
Lump-Sum Payment/Payroll Deductions: allows
you to pay an amount of your choice in a single upfront
payment and pay off the balance of the contract through
monthly payroll deductions.
(6-20-07)
9. Q: What is the significance of before-tax and after-tax dollars?
A: Before-tax dollars
are funds that are not subject to income tax at the time
they are earned; rather, they become taxable when you retire,
terminate County service, or when your beneficiary receives
them upon your death. Payroll deductions and rollovers
from your County 457 plan and/or other tax qualified plans
are examples of before-tax dollars. The benefit of before-tax
payroll deductions is that it reduces your taxable income.
After-tax dollars
are funds — such as proceeds from mortgage refinancing
or savings accounts — that were subject to income tax
at the time they were earned. Since they have already been
taxed, they are not subject to income tax at retirement,
termination, or death. However, the interest earned on your
contributions is taxable.
If
you use after-tax dollars for a lump-sum payment, a portion
of your retirement allowance equal to the amount of after-tax
dollars you paid will be considered non-taxable income. That
portion will be excluded from taxability until you have recovered
the full amount of your non-taxable payment.
Consult
with a professional advisor regarding tax and legal matters
pertaining to your individual situation; LACERA does not
offer tax or legal advice. (6-27-08)
10. Q: What contract terms are available?
A: Contract terms (payment periods) range from one month to 120 months (ten years).
11. Q: Will I be permitted to change or revoke my contract after I sign it?
A: The ability to change or revoke your contract hinges on the type of payment method you select:
- Once you sign a contract that includes payroll deductions and/or payments using other before-tax funds, the contract is irrevocable.
- Only contracts based on payments made exclusively with after-tax dollars may be revised or revoked.
If you
revoke your after-tax dollar contract before it is paid in
full, LACERA will prorate the amount you have paid and credit
your account for years/months of ARC accordingly. LACERA
cannot refund the money you already paid until you terminate
County service; if you die, the money will be paid to your
beneficiary.
(6-12-07)
12. Q: When do I begin making payments?
A: If you select monthly payroll deductions, your deductions will begin on the 15th of the month, within 60 days of LACERA’s receipt of your signed Payment Contract.
13. Q: How do I initiate a lump-sum payment for an ARC purchase?
A: To make a lump-sum payment, you must
include your check or money order with your signed ARC
Payment Contract. If you use a rollover or transfer for
a lump-sum payment from a Horizons 457 Plan or County 401(k)
Plan, you must call 1-800-947-0845 to request a rollover/transfer
form from Great-West and send the signed form to LACERA.
For rollovers of other before-tax funds, you must sign
and complete the member section of a LACERA Rollover/Transfer
Certification Form and send the form to your plan
administrator to complete, sign, and return to LACERA. LACERA
must receive a completed and signed Rollover/Transfer Certification
Form directly from the Plan Administrator before your rollover
or transfer can be accepted.
(6-12-07)
14. Q:
What happens if I retire or terminate County service
before completing my ARC Payment Contract?
A: If you retire or terminate County service and defer your retirement (leave your contributions on deposit with LACERA) before your contract is paid in full, you may complete the contract within 120 days after your effective date of retirement or termination. If your contract is not paid in full, your retirement allowance will be prorated to include ARC for whole months already paid.
SECTION II: ARC FOR CONTRIBUTORY PLANS A, B, C, D
1. Q: How will my ARC contract affect my monthly plan contributions?
A: Any payroll deductions for ARC will be made in addition to your current retirement contributions. (6-29-07)
2. Q:
I’m in a contributory plan., When I retire, will
cost-of-living (COLA) adjustments apply to the ARC I’ve
purchased?
A: Yes. The annual April 1 COLA percentage is applied to a retiree's total monthly retirement allowance, which includes any ARC purchased. (COLA increases are subject to annual approval by the Board of Retirement.) (6-12-07)
3. Q:
What happens if I receive a disability retirement before
completing my ARC Payment Contract?
A: If you are granted a disability retirement before completing your Payment Contract, your account will be credited for the years/months of ARC paid up to the date your disability retirement was granted. If you elect to complete the Payment Contract, you must do so within 120 days of the date your disability was granted. (6-12-07)
4. Q: What happens if I die before completing my Payment Contract?
If you are in a contributory plan and you die before paying your contract in full, your eligible surviving spouse or domestic partner (or minor child) would be eligible to complete payment within 120 days after the date of death.
If your contract is not paid in full, the survivor allowance will be prorated to include ARC for whole months already paid.
SECTION III: ARC FOR NON-CONTRIBUTORY PLAN E
1. Q: If I buy Plan E ARC now and later transfer to Plan D, can my Plan E ARC be converted to Plan D?
A: No. If you transfer to Plan D, your Plan E ARC will remain as Plan E service credit; you will have double accounts. At retirement, you will receive a combined allowance: a Plan E retirement allowance based on your previous period of Plan E service credit (including Plan E ARC) and a Plan D retirement allowance based on your Plan D service credit (including Plan D ARC). (Retirement eligibility rules apply.) (6-29-07)
2. Q: When I retire, will cost-of-living (COLA) adjustments apply to the Plan E ARC I’ve purchased?
A: Yes. The annual April 1 COLA percentage will apply to Plan E ARC service credit and any Plan E service earned after June 4, 2002. (COLA increases are subject to annual approval by the Board of Retirement.) (6-20-07)
3. Q: What happens if I terminate County service prior to becoming vested?
A: If you terminate County service before earning ten years of service credit (vested), LACERA will refund the amount you paid on your ARC contract. (6-29-07)
4. Q: What is the maximum percentage of my final compensation that I can receive when I retire?
A: The retirement allowance of a Plan E member cannot exceed 80 percent of final compensation, regardless of ARC. (6-29-07)
5. Q: Will my years of service affect my cost to purchase Plan E ARC?
A: After 35 years of service the cost of Plan E ARC is greatly reduced, so if you currently have 30 or more years of service credit, it may be advantageous for you to delay purchasing Plan E ARC until you reach 35 years of service. To find out the particulars regarding your situation, call 1-800-786-6464 to speak with a LACERA Retirement Benefits Specialist. (7-16-07)
6. Q: Will my years of service affect the benefit I will receive from Plan E ARC?
A: Just as the cost of Plan E ARC is reduced after 35 years of service, so is the benefit it provides. Therefore, depending on the age of the member and the length of his or her County career, there are scenarios where a member could buy Plan E ARC at the full rate, but receive the benefit at a reduced rate. If you currently have 30 or more years of service credit, or if you believe you will work 30 or more years before you retire, call 1-800-786-6464 to speak with a LACERA Retirement Benefits Specialist before you purchase Plan E ARC. (7-20-07) |
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1. Q: What's the difference between an Open Window transfer and a Prospective transfer?
A: The Open Window transfer requires you to purchase and convert all of your Plan E service credit to Plan D. If you plan to purchase and convert all of your Plan E service credit to Plan D, your overall cost will be lower with an Open Window transfer because your monthly Plan D contributions will be paid at a lower rate (your age at entry into LACERA). You do not become eligible for Plan D benefits until you have completed payment in full.
A Prospective transfer allows you to change plans and begin monthly contributions to Plan D without purchasing any of your Plan E service credit. You may choose to purchase and convert some or all of your Plan E service credit to Plan D. Your monthly Plan D contributions will be paid at a higher rate (your current age). (10-24-06)
Use the Plan Transfer Calculator to see a personal
cost comparison of an Open Window Transfer and a Prospective
Transfer that includes purchase of prior service and conversion
of Plan E service credit to Plan D.
2. Q: If I transfer prospectively
from Plan E to D and don’t buy all of my E time,
which plan will my retirement be based on?
A: When you retire, you will have service credit in both plans, so your retirement benefit will be a combined allowance. First, your retirement allowance under each plan will be calculated separately, based on the service credit you earned under that plan. Then, the two amounts will be added together to determine your total monthly allowance. You may retire from each plan when you meet the minimum retirement age (age 50 for Plan D; age 55 for Plan E) and service credit requirements (10 years of combined Plan D and Plan E service credit).
If you become vested in Plan D and leave your contributions on deposit (deferred membership) when you terminate, you will be eligible to retire from D on the date you would have earned the required service credit had you remained in a full-time County position. (8-31-06)
3. Q: If I transfer prospectively, when can I transfer back?
A: If
you transfer prospectively, you must remain in your new plan
for three years. After three years, you may choose to transfer
back.
NOTE:
If you transfer from Plan D to Plan E and, after three years,
you elect to transfer back to Plan D, your cost for monthly
Plan D contributions will be higher (based on your age at
the time you transfer back to Plan D). (10-24-06)
4. Q: I want to transfer prospectively to Plan D now and retire at age 50. When will I get my Plan E benefits?
A: You will be age-eligible to retire from Plan D at age 50. If you choose to retire at age 50, you will be eligible to receive only your Plan D benefit at that time. You may apply to receive your Plan E benefit when you reach age 55.
5. Q: With a Prospective transfer, may I use money from my 401(k) plan to purchase service credit?
A: Yes, LACERA accepts rollovers of before-tax funds from 401(k) plans for purchase and conversion of Plan E service credit. Contact Great-West at 1-800-947-0845 to determine the amount you are eligible to roll over from the County 401(k) Savings Plan. The amount an active employee may roll over is limited by age, years in plan, and contribution type. (10-24-06)
6. Q: If I transfer prospectively to Plan D, how much Plan E service credit can I purchase?
A: You may opt to purchase and convert any or all of your Plan E service credit. The minimum amount is one year, unless you have less than one year of Plan E service credit. In that case, your purchase must convert all of your Plan E service credit to Plan D. (10-24-06)
For
a cost estimate, try our Plan Transfer Calculator.
7. Q:
If I prospectively transfer to Plan D and purchase some of my
prior Plan E time, how will my monthly Plan D contributions be
affected?
A: Your monthly Plan D contributions will continue in addition to any monthly payment you make for additional service credit purchases.
Once your contract is paid in full, LACERA will adjust (reduce) your monthly Plan D contribution rate to reflect the age you were when you began the Plan E service you just purchased. (8-31-06)
8. Q: In a Prospective Transfer, how is the cost to purchase prior Plan E service credit calculated?
A: Your cost is the amount you would have paid in contributions if you had been a Plan D member for the period of Plan E service credit you are purchasing; monthly contributions are based on your age at the birthday nearest the first date of the period to be purchased, plus interest. (9-6-06)
9. Q: If I transfer prospectively from Plan E to Plan D, what types of funds may I use to purchase my service credit?
A: Under the Pension Protection Act of 2006, prior service may be purchased using any of the following types of funds:
- 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 (including savings, funds from mortgage refinance, cash-on-hand, etc.) (12-30-06)
10. Q: What payment options are available?
You have a choice of three payment options: lump-sum payment, payroll deductions, or a combination of both.
- Lump-Sum Payment: a single payment for the total cost of your service credit, including interest calculated through the contract expiration date.
- Payroll Deductions: automatic monthly deductions from your paycheck, determined by dividing the total dollar amount of your contract by the term (number of months) of your contract. Interest is calculate dover the term of the contract; therefore, the amount you pay through payroll deductions is greater than it would be through a lump-sum payment.
- Combination Lump-Sum Payment/Payroll Deductions. allow you to pay an amount of your choice in a single upfront payment and pay off the balance of the contract through monthly payroll deductions. (3-26-07)
11. Q: What are the payment terms on a Prospective Transfer contract?
A: You may choose a contract term (payment period) from one month to 10 years (120 months). Generally, your payment contract must be completed before you retire or terminate County employment. However, if you terminate County service or retire earlier than anticipated, you may pay the balance due within 120 days after your effective date of retirement or termination. (4-6-07)
12. Q:
If I transfer prospectively and
purchase some of my prior service, can I terminate my contract
if I change my mind?
A: The
ability to change or revoke your contract hinges on the type of payment
method you select. Once you sign a contract that includes payroll deductions
and/or payments using other before-tax funds, the contract is irrevocable.
Only contracts that indicate your payments will be made exclusively with
after-tax dollars may be revised or revoked. (3-19-07)
13. Q: How does my Prospective Transfer to Plan D affect my eligibility to apply for disability retirement?
A: If you transfer prospectively to Plan D you are eligible to apply for a service-connected disability retirement (regardless of the date of injury) when either of the following conditions is met:
- Two continuous years of active service completed as an active Plan D member after your most recent effective date of transfer (service without medical leave specifically related to a pre-existing disability, injury, or disease).
- If service has not been continuous, five years of service credit earned as an active Plan D member after your most recent effective date of transfer.
To apply for a nonservice-connected disability retirement, Plan D members must have earned a minimum of five years of County service credit. The credit may include Plan D, Plan E, or reciprocal service credit, but must include one of the Plan D service credit options listed above. (3-19-07)
14. Q: What happens if I stop working, retire, or die before I complete payment for my prospective transfer service credit purchase?
A: If you terminate employment or retire before your contract is paid in full, you may complete payment within 120 days after your termination or retirement date. If you die, your eligible surviving spouse or domestic partner (or minor child) would be eligible to complete payment within 120 days after the date of death. If not paid in full, the retirement allowance or survivor allowance would be prorated to include service credit for whole months already paid. (10-24-06)
15. Q: I transferred prospectively from Plan E to Plan D and
I have double accounts with LACERA. Can I withdraw my Plan D retirement
contributions and keep my vested Plan E service credit?
A: No. If you withdraw your Plan D contributions, you will forfeit
all your future retirement benefits, including any disability or vested
Plan E benefits. LACERA is a single-plan benefit administrator. A double
account status reflects one active and one inactive plan. You cannot terminate
and withdraw some of your plan benefits without losing all your future
benefits. (4-10-07)
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1. Q: What do the terms mean that are listed under “Allowances” on my monthly pay stub?
A: The terms represent income and allowances reflected in your retirement check. Some of the most common terms include:
Annuity Non-taxable - This portion of your allowance is not taxable. It represents after-tax contributions; in other words, you have already paid taxes on this amount. After-tax contributions may be contributions you made before August 1, 1983 or after-tax payments you made to purchase service credit.
Annuity Taxable - This portion of your allowance is taxable. It represents before-tax contributions; in other words, you have not paid taxes on this amount yet. Before-tax contributions may include contributions you made since August 1, 1983 or before-tax payments you made for a plan transfer or to purchase service credit.
Pension Reserve - This portion of your allowance is taxable. It is derived from contributions made by the County or district.
Cost-of-Living
Adjustment - Represents the accumulated cost-of-living
(COLA) increase granted by the Board of Retirement each April
1. Once granted, the dollar amount is permanent and cumulative.
Contributory plan members (Plans A, B, C, or D) and Plan E members
who earned service credit on and after June 4, 2002 are eligible
to receive the April 1 COLA. Click
here to read about the current year's COLA. (2-24-09)
Supplemental Targeted Adjustment for Retirees (STAR COLA) - Represents the cost-of-living benefit granted by the Board of Retirement on January 1 for those members who have lost more than 20 percent of the value of their retirement allowance to inflation. Only contributory plan members are eligible for STAR COLA.
2. Q: Is LACERA still offering Savings Bonds purchases?
A: No. The United States Department of the Treasury has converted its Savings Bond program to a paperless web-based arrangement, where Bond purchases may be made by individuals over the internet, rather than by employer-administered payroll deduction. To purchase Savings Bonds, visit the U.S. Treasury web site. (2-3-06)
3. Q: What is STAR COLA, and how is the benefit determined?
A: The Supplemental Targeted Adjustment for Retirees (STAR) Program is designed to ease the effects of inflation for a retiree whose retirement allowance has lost more than 20 percent of its purchasing power since retirement. Eligible retirees are determined by plan and retirement date. Each year, the Board of Retirement determines whether a STAR benefit is due to any LACERA retirees based on inflation experienced over their retirement years, offset by April 1 COLAs the retirees have already received. Inflation is measured by increases in the Los Angeles-Riverside-Orange County, CA Consumer Price Index (CPI). The Board also determines whether the benefit should be an ad-hoc benefit (paid for one year only) or a permanent benefit (added to the base retirement allowance for the member’s life). (7-18-06)
4. Q: I am the survivor of a Plan D member. Are the benefits I’m receiving affected by the amount my deceased spouse (or domestic partner) already received?
A: Survivor benefits are determined by the retirement option the member chose at retirement. If a Plan D member selects Option 1, upon the member’s death, his/her named beneficiary will receive a lump-sum payment equal to the remaining balance of the member’s retirement contributions, if any. The amount paid to the beneficiary under this option is affected by the amount the member received in retirement.
If a plan D member selects the Unmodified Option or the Unmodified+Plus Option, the eligible surviving spouse or domestic partner will receive a monthly allowance for the rest of his/her life. This benefit amount is not affected by the amount the member received in retirement. (2-3-06)
5. Q: With the Unmodified Retirement Option, what will my spouse receive under the survivor continuing allowance?
A: The percentage is based on your retirement plan and date. Generally, if you are in Plan A, B, C, or D and choose the Unmodified Option, your spouse or domestic partner will receive 65 percent of your monthly allowance; 55 percent if you are in Plan E. (For members who retired before June 4, 2002, the percentages were 60 percent and 50 percent.) (6-26-06)
6. Q: How has LACERA changed its tax reporting on Service-Connected Disability (SCD) Retirement allowances?
A: In response to IRS requirements, LACERA now (2006) determines the taxable amount on SCD allowances, and identifies it accordingly in the Total Taxable YTD category on your check stub or automatic deposit receipt (ADR). Previously, LACERA reported SCD income as “Taxable Amount Not Determined.”) These changes will also be reflected on the annual Form 1099R that LACERA is required to send each retiree and file with the IRS. For more information, call 1-800-786-6464 and speak with a LACERA Retirement Benefits Specialist. (6-27-06)
7. Q: How can I sign up for Direct Deposit?
A: You can enroll or make changes by phone or by mail. To enroll by phone, call 1-800-786-6464 and have your bank account number and bank routing number handy. To enroll by mail, send your completed LACERA Direct Deposit Authorization Form to LACERA. The form is included in the Direct Deposit brochure, which can be accessed on our Brochures and Forms page. (7-14-06)
8. Q: What is COLA?
A: “COLA” is a cost-of-living adjustment for your retirement allowance. This benefit aims to reduce the impact of inflation for retirees. Adjustments are based on changes in the Consumer Price Index (CPI) and are approved by the Board of Retirement each year. (8-1-06)
9. Q: I'm in Plan E. Do I get a cost-of-living adjustment?
A: As a Plan E member, you are eligible for Automatic COLA on the portion of your retirement allowance based on service credit earned on and after June 4, 2002. This annual adjustment can result in an increase up to a maximum of 2%. The actual percentage may vary each year based on inflation rates.
For more information see our COLA
web page. (2-24-09)
10. Q:
I'm interested in the special LACERA hotel rates. How
can I prove I’m a retired County employee?
A: You can present the pay stub from your LACERA retirement allowance check to verify you are a retired County employee. LACERA doesn’t issue membership cards; membership numbers and other personal information are kept private. Click here for additional information on hotels discounts.
11. Q: I'm retired. What are my restrictions if I decide to work for the County part time?
A: To remain eligible to receive your retirement allowances, you would be restricted to working 120 days (960 hours each fiscal year, July 1 - June 30).
Working after Retirement (3-27-07)
12. Q: I am retired, but wish to return to full-time County service. What should I do?
A: To return to work with the county and active membership in LACERA, a retired member must fulfill the following conditions:
- Submit an application for reinstatement to the Board of Retirement
- Be determined by the Board of Retirement not to be incapacitated for assigned duties, based on medical examination
- Be hired by the County as a permanent employee working at least three-quarter time (1-3-07)
13. Q: Where can I find a Payday Planning Calendar for retired members?
A: A Payday Calendar displaying mailing dates for LACERA retirement checks, direct deposit dates, and all LACERA holidays can be accessed in our Retired Member's section of our web site. Payday Calendar (1-3-07)
14. Q: I'm retired and just got divorced. Will this affect LACERA sending my monthly retirement allowance?
A: If you divorce after retirement, LACERA will continue paying your full monthly allowance until we receive a conformed copy (with the court clerk's filing date stamp and the judge's signature) of the final Judgment of Dissolution directing a split of your allowance with your ex-spouse.
15. Q: I'm retired and just got divorced. Will LACERA automatically remove my ex-spouse from my Retiree Health Care coverage?
A: No. You must notify LACERA to remove
your ex-spouse from your Retiree Health Care coverage.
However, in some cases, the court will order continuation
of an ex-spouse's health insurance and will hold you financially
responsible for that coverage. (2-5-07)
16. Q: When do we find out about the cost-of-living adjustment (COLA)?
A: Each year, before April, the Board of Retirement evaluates the inflation experienced during the past year and determines the percentage increase, if any, for LACERA allowances paid to retirees, survivors, and beneficiaries. This adjustment becomes effective each April 1st, so the increase will be reflected in your April 30th check. (3-29-07)
17. Q: I’m a retiree, and I'm getting divorced soon. What will happen to my monthly check?
A: If the Court determines that your LACERA benefits are community property, a court order will direct the division of your monthly allowance. Please contact LACERA as soon as possible to notify us of the divorce so that we can update your records. When the dissolution is final, LACERA will require a conformed copy (with the court clerk’s filing date stamp and the judge’s signature) of all the pages of your Judgment of Dissolution and, if applicable, a copy of the Domestic Relations Order (DRO). Our Legal Division will review the documents to ensure that they conform to LACERA’s plan.
LACERA will continue to pay your monthly allowance until all the final documents are received and reviewed. Then, any division will be applied to your allowance. In addition, you must contact LACERA in writing to remove your former spouse/partner from your LACERA-administered retiree health care coverage within 30 days after the date of dissolution. (4-6-07)
18. Q: How can I change the tax withholding for my check?
A: If you are a retiree, survivor, or beneficiary who receives a monthly allowance from LACERA, you may change your federal tax withholding at any time. Print the form from the Brochures & Forms page, complete and sign it, and mail it to LACERA. Your new tax withholding will be reflected on the check that is issued at least 30 days after we receive your form. (4-6-07)
19. Q: I am the spouse of an LA County retiree. Am I eligible for part of his benefit if he dies before I do?
A: If you were married/registered partners at least one year before the member retired (or, in the case of a service-connected disability retirement, any time prior to the retirement date), you are an eligible surviving spouse/partner and you may be eligible for a benefit upon the member’s death. The benefit depends upon the member’s plan, retirement option, and other factors. (4-6-07)
20. Q: What if I marry after retirement? Will my new spouse be eligible for any LACERA benefits?
A: If you marry or enter into a registered domestic partnership after you retire, your new spouse/partner will be an eligible dependent under the LACERA-administered retiree health care program. You must add your new dependent within 30 days after the date of marriage/registration. Generally, a spouse/partner added after retirement is not eligible for a continuing monthly allowance after the member’s death. Also, you may name him or her as your beneficiary for the $5,000 death benefit. (4-6-07)
21. Q:
I'm a new retiree. What information resources do I have?
A: Our Retired Member section, under Benefits, offers retirement information. You will receive our quarterly newsletter, Spotlight on Retirement, which includes information on legislation, the LACERA-administered health care program, and more. Once a year, you’ll receive a package with updated information on the medical and dental/vision plans. (4-6-07)
22. Q: When will I get my Form 1099?
A: LACERA mails a Form 1099-R at the end of January to each retiree, survivor, and beneficiary who received a benefit from LACERA in the previous year. This form indicates the total income you received from LACERA and should be used to file your income tax return. (4-6-07)
23. Q: How
is the Cost-of-living adjustment (COLA) applied each year to
my retirement allowance?
A: The Board of Retirement determines whether there will be an increase
or decrease in the COLA based on the Bureau of Labor Statistics Consumer Price
Index (CPI). The COLA is cumulative. Once approved by the Board, the COLA becomes
a permanent part of your retirement benefit. (3-3-08)
24. Q: Will
the COLA be applied to my deferred retirement?
A: No. The annual COLA benefit will be applied to your retirement
benefit after you have retired. (3-3-08)
25. Q:
As a retired member, when I am deceased, will my retirement
benefits stop or will they go to my survivor?
A: Survivor benefits
vary according to the Retirement Option you elected. Under the Unmodified
option, Unmodified+Plus option, and Options 2, 3, and 4, upon your death,
your eligible survivor is entitled to a continuing monthly allowance. The
allowance is based on a percentage of the monthly allowance you received
during your lifetime; that percentage is determined by the option you elect
at retirement. Under Option 1, your named beneficiary receives a lump-sum
payment (NOTE: Option 1 is not available under Plan E). See Service Retirement for more information.
When a member in Plan
A, B, C, D, or E dies after retirement, the surviving spouse,
or the named beneficiary or estate, is entitled to receive
a one-time $5,000 death/burial benefit from LACERA. (5-27-08)
When
a member in Plan A, B, C, D, or E dies after retirement,
the surviving spouse, or the named beneficiary or estate,
is entitled to receive a one-time $5,000 death/burial benefit
from LACERA. (5-27-08)
26. Q:
As a retiree, I take extended vacations. Should I make
arrangements to ensure I continue receiving my retirement
checks while I'm away?
A: It
is important to notify us when you have an extended travel schedule,
when you will be spending time at a second home or vacation home,
or when you have other temporary address changes. If, for some
reason, your retirement check is returned to LACERA while you
are away, we will stop payment on the check for your protection. (6-12-08)
27. Q:
My LACERA "New Retiree Package" included information
on Employee Unions/Senior Associations. Is LACERA affiliated
with these organizations?
A: These
organizations are not affiliated with LACERA. As a courtesy,
LACERA occasionally enables them to send you material. We do
not provide your address to these organizations. LACERA
does not endorse these groups or the services they offer. You
may wish to review their information and consider whether their
services are of interest to you. When you receive the mailings,
call the organizations directly if you have any questions about
their services. Please note: LACERA is unable to answer questions
regarding these organizations or their programs. (6-05-08)
28. Q:
I am living outside California in another country, and
I cannot use the toll-free number for LACERA. Is there
another phone number I can call?
A: You can call LACERA at (626) 564-6132.
Unfortunately, it will not be a free phone call, but this phone
number will take you directly into the Call Center at LACERA. (6-09-08)
29. Q:
If I remarry after retirement, will my new spouse be
eligible to receive a continuing allowance if I predecease
him/her?
A: No. A surviving spouse or a registered
domestic partner is eligible to receive a continuing monthly
survivor allowance if he or she married the member or registered
as a domestic partner at least one year prior to the member's
date of retirement. You can name your new spouse/partner as your
beneficiary for the $5,000 death/burial benefit. (6-10-08)
30. Q:
I'm retired and thinking of relocating to another state. How would this affect my retirement benefits?
A: If
you move from California to another state, LACERA will stop the
withholdings for California State taxes on your monthly retirement
checks. State tax requirements on retirement income differ from
state to state. You should consult with your own tax advisor
and contact the appropriate state tax authority for its rulings.
Be sure to contact LACERA and notify us of your address change
so that you will continue to receive your retirement checks once
you relocate. You can make changes to your address over the phone
by calling LACERA at 1-800-786-6464 or (626) 564-6132.
Health care plans will probably change
if you move out of state, or the country. Contact the insurance
company for specific information about coverage differences.
Phone numbers for your insurance companies can be found at
Contact Health Care Insurance Companies. Notify LACERA before
you cancel your current health plan coverage. (6-10-08)
31. Q:
I have direct deposit for my monthly retirement checks. I did not receive my receipt for my last check. What should I do?
A: Contact
LACERA at 1-800-786-6464 and let us know you did not receive
your direct deposit receipt in the mail. We will send you a duplicate
receipt.
If you get a monthly paper check
and you do not receive it by the fifth working day after
the date payable, you may request a duplicate check. The
duplicate check will be mailed to you within three to five
days of your request. If you do eventually receive the original
check, do not cash or deposit it. Write "VOID" on it and
return it to LACERA. (6-10-08)
32. Q:
I found an uncashed check payable to me from LACERA,
and it is six months old. How long is the check valid
for cashing?
A: LACERA will stop payment on checks
one year after they have been issued. After one year, you must
contact LACERA at 1-800-786-6464 regarding reissuance of the
check. (6-10-08)
33. Q:
Will my monthly retirement allowance stay the same if
certain months have 30 days instead of 31 days?
A: Yes.
Your monthly retirement allowance is based on a monthly amount
which will remain the same each month. For example, if the calculation
for your monthly allowance is $5,000, your monthly gross payment
will be $5,000 whether there are 28, 29, 30, or 31 days in the
month.
If
your effective retirement date is after the first of the
month, i.e. – May 15 – your first retirement
check will be prorated based on a daily amount. Thereafter,
your retirement checks will be a fixed monthly amount.
Your
monthly retirement allowance will remain the same until April
1 each year if you are eligible for a Cost-of-Living Adjustment
(COLA). (6-11-08) |
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Retiree Health Care
1. Q:
When I retire, how much of my health care premium will
be subsidized by the County?
A: The
general rule is that if you have 10 years of retirement service
credit, the County contributes 40 percent of your health care plan
premium or 40 percent of the benchmark plan rate (Anthem Blue Cross
Plans I and II), whichever is less. For each year of retirement
service credit beyond 10 years, the County contributes an additional
4 percent per year, up to a maximum of 100 percent for a member
with 25 years of service credit.
The County
contribution can never exceed the premium of the benchmark
plan. If the premium for the plan and coverage option you
have chosen exceeds the benchmark premium, you are required
to pay the difference, even if you have 25 years of service.
If you have 25 years of service and your plan premium is
less than the benchmark rate, the County contributes 100
percent of your plan premium only, not the benchmark plan
rate. (7-18-06)
2. Q: I'm a new retiree. When will my health insurance begin?
A: LACERA coverage is coordinated to begin on the first day of the month after active County health coverage ends. For this to occur, your enrollment form must be received by LACERA within 60 days from the date of your retirement, or within 60 days from the date your name appears on the Board of Retirement agenda. Late enrollment rules apply if LACERA does not receive your enrollment form in a timely manner.
3. Q: I'm
a retiree. How do I enroll my new partner on my medical
insurance?
A: To add your new spouse or domestic partner you must fill out a Change/Cancellation Form and send it to LACERA within 30 days from your date of marriage or domestic partnership registration. You must also provide an original certified marriage license or Certificate of Registered Domestic Partnership, which will be copied and returned to you. If LACERA receives the required items by the 15th of the month, coverage begins on the first day of the month following the date of the qualifying event. If any dependent is added later than 30 days from the date that he/she becomes an eligible family member, late enrollment rules apply. (6-26-06)
4. Q: How does turning 65 affect my medical insurance?
A: If
you're eligible to receive Medicare Part A and B when you turn
65, you may elect a Medicare HMO Plan or a Medicare Supplement
Plan. These plans are designed to coordinate payment of insurance
claims with Medicare and are less expensive than the standard
HMO or fee-for-service plans. LACERA currently offers three Medicare
HMO plans: Kaiser Senior Advantage, SCAN Health Plan, Secure
Horizons, and one Medicare Supplement Plan - Anthem Blue Cross
III.
5. Q: How does the new Medicare Part D prescription drug coverage affect my prescription drug coverage?
A: Your
prescription drug coverage through any LACERA-administered
medical plan is what Medicare calls “creditable,” meaning
it is as good as or better than any individual prescription
drug coverage offered by any Medicare Part D plan.
If you want to keep your LACERA-administered coverage, DO NOT ENROLL in an individual Medicare Part D plan. If you do, you may jeopardize your coverage in the LACERA-administered health care benefits program and you may not get it back until later.
You can
find the “Creditable
Coverage Notice” online on the Brochures
& Forms page, in the Retiree Health Care section.
If you decide to enroll in an individual Part D plan, you
can show this notice to Medicare and avoid a Medicare Part
D late enrollment penalty. (2-7-08)
6. Q:
I am getting ready to retire. How do I enroll in a LACERA-administered
health care plan?
A: If
you visit LACERA's Public Counter to apply for retirement,
a LACERA Retirement Benefits Specialist will meet with you
and assist you in preparing your retirement paperwork. The
specialist will provide you with enrollment forms for LACERA-administered
retiree medical and dental insurance and direct deposit.
Once
you retire, you will receive an Exploring
Your Health Care Benefits Through LACERA package
in the mail which contains information describing your retirement
health care options. Also enclosed within the mailer will
be a postcard to be filled out and returned to us for specific
information about any of the plans.
The
enrollment process involves two steps.
1. Read your LACERA Exploring Your Health
Care Benefits booklet regarding all the various medical options. Fill
out the card enclosed to request specific information and enrollment
forms for the plans you have selected.
2. Within ten working days you will receive an envelope containing the
information that you requested. Please note that you must select
a health care plan within 60 days of your retirement date.
If
you enroll after the 60-day deadline, you must complete a
six-month waiting period from the date your enrollment form
is received by LACERA.
You
should also refer to The
Process of Retiring web page which includes
a Checklist for Retirement Planning to review
all the necessary steps in applying for retirement. See
the Pre-Retirement
Guide on
the Brochures
and Forms page for additional information. (5-28-08)
7. Q: How can I switch my LACERA-administered medical plan?
A: You
must complete a Medical and Dental/Vision Change Form.
The form is available on the Brochures & Forms page. Or
you can call LACERA's Retiree Health Care Division at 1-800-786-6464
and press 1 to request a form or receive more information.
Generally,
a one-year waiting period from LACERA’s receipt of
your signed Dental/Vision Change form applies when switching
LACERA-administered dental/vision plans. Coverage is continuous
and no evidence of insurability is required. NOTE: The waiting
period is waived if you move out of your HMO's designated
service area. See the Out of State Move page for more
information. (6-11-08)
8. Q: Are there exceptions to the six-month waiting period?
A: Yes. Exceptions include:
- Moving
out of your plan’s service area (you must notify
LACERA within 30 days)
- Changing
from Anthem Blue Cross Plan I, Anthem Blue Cross Plan II,
CIGNA, Anthem Blue Cross Prudent Buyer Plan, or Kaiser
Permanente to Kaiser Senior Advantage, Secure Horizons,
or SCAN
- Changing
from Anthem Blue Cross I to Anthem Blue Cross II
- Changing
from Anthem Blue Cross I, II, Prudent Buyer Plan to Anthem
Blue Cross III
- Changing
from any LACERA-administered medical plan to SCAN (11-19-08)
9. Q: How can I switch my LACERA-administered dental/vision plan?
A: You
must complete a Medical and Dental/Vision Change Form.
The form is available on the Brochures & Forms page.
Or you can call LACERA's Retiree Health Care Division at
1-800-786-6464 and press 1 to request a form or receive
more information.
Generally
a one-year waiting period from LACERA’s receipt of
your signed Dental/Vision Change form applies when switching
LACERA-administered dental/vision plans. Coverage is continuous
and no evidence of insurability is required. NOTE: The waiting
period is waived if you move out of your HMO's designated
service area. (6-11-08)
10. Q:
Where do I get a Change Form for the LACERA-Administered
Health Care Plans?
A: Medical and Dental/Vision Change Forms are available on the Brochures & Forms page . Or call LACERA at 1-800-786-6464 and press 1 to request a form or get more information. (3-19-07)
11. Q: I’m a retiree and I have a question about health care. How can I find the answer?
A: Visit our Retiree Health Care section for enrollment information, plan phone numbers and web sites, and more about the LACERA-administered health care program, including medical and dental/vision plans. Our Brochures & Forms page includes printed materials and forms. If you cannot find the answer to your question by using these online resources, call us at 1-800-786-6464 and press 1 to speak with a Health Care Benefits Specialist. (4-6-07)
12. Q: I am a retiree. If I die, will health care coverage extend to my eligible survivors?
A: If a retired member dies while covered
by a LACERA-administered health plan, the eligible survivors
may continue coverage. Following are the administrative
rules.
- When
an eligible survivor notifies LACERA of a member's death,
we will mail an information packet to the survivor. LACERA
must be notified within 30 days of the event; otherwise
Late Enrollment rules apply.
- Late
Enrollment rules include a six-month wait for medical and
a one-year wait for dental/vision coverage, from the date
LACERA receives the enrollment form. Benefits for eligible
dependents are continuous, provided they were covered under
the deceased member's plan.
- If
a survivor is not eligible for continuing health care benefits,
but has been continuously covered under your plan, LACERA
will mail the survivor a COBRA packet with information
on continuing health care coverage.
- If
a survivor is eligible for continuing health care benefits,
but was not continuously covered under your plan, late
enrollment rules will apply.
- If
a survivor is covered under a LACERA-administered health
care plan and remarries, the survivor's eligible new dependents
can be added to the plan, provided LACERA is notified within
30 days of the date of acquisition (i.e. marriage, birth,
adoption, etc.). However, when the eligible survivor dies,
the dependents will no longer be eligible for continued
coverage through LACERA, except for a limited period of
time through COBRA.
- If
your eligible survivors are required to pay premiums for
coverage, they will be notified accordingly.
13.
Q: I'm a retiree. Who qualifies as
a dependent on my retiree health insurance?
A: Eligible dependents include your spouse, eligible Domestic
Partner, unmarried children under 19 or up to 23 if enrolled in school,
and/or your unmarried dependent children over 19 who are incapable of self-support
due to physical or mental handicap. (3-3-08)
14.
Q: My wife is a retired LACERA member.
Would I still be eligible for health insurance coverage
if she pre-deceases me?
A: Yes, an eligible surviving spouse or domestic partner of
a retired member qualifies for the same health benefits they received
while the member was alive. (3-3-08)
15.
Q: I'm going to retire soon, and I would like information about the health care plans available to retired members.
A: For a list of current LACERA-Administered Retiree Health
Care information online, visit our Retiree
Health Care section. (3-3-08)
16. Q:
I am a retiree. How do I apply for the LACERA-sponsored
Long-term Care plan underwritten by MetLife?
A: To obtain an application,
receive more information, or to make a reservation to attend
a long-term care plan seminar, please call 1-800-207-9883. The
seminars are held on the second Wednesday of each month at 10:30
a.m. at LACERA - Gateway Plaza. (6-12-08)
17. Q:
If I retire and have dependent children, will the LACERA-administered
Health Care plans cover my children?
A: Yes.
Your eligible dependents include:
- Your
spouse (unless legally separated)
- Your registered
domestic partner, provided you both filed a California
Declaration of Domestic Partnership
- Your
unmarried natural or legally adopted children or stepchildren,
up to age 19 or 23 if they are enrolled as full-time students
in an accredited institution and depend on you for financial
support
- Your unmarried dependent
children over 19 who are incapable of self-support due
to a physical or mental handicap and meet specific requirements.
(For details, call Retiree Health Care at 1-800-786-6464
and press 1.) (5-22-08)
18. Q:
How can I qualify for the Medicare Part B Reimbursement
and when will I receive the reimbursement money?
A: The County may* reimburse members for the
amount of their Medicare Part B premiums on a tax-free basis
if the following conditions are met:
- You
are enrolled in Medicare Part A and Medicare Part B.
- You
are enrolled in a LACERA-administered Medicare HMO plan
or Medicare supplement plan.
- You
are paying for your Medicare Part B premium yourself.
- You
are not being reimbursed for your Medicare Part B Premium
by another agency, for example: other employer or State.
Each
month after you have paid the Medicare Part B Premium, LACERA
will include the reimbursement on your monthly retirement
check.
*This
reimbursement program is subject to annual review by the
Board of Supervisors. (5-27-08)
19. Q:
Does LACERA still have annual Retiree Health Fairs?
A:No.
In lieu of the annual health fair, we now have a retiree health
improvement program entitled Staying Healthy Together:
Focus on Wellness which provides health information
via three sources: 1) Newsletters, 2) Web, and 3) Workshops.
With this program, we can provide information on staying healthy
to all our retired members. Every six months, the program will
focus on a new health-related topic. Your quarterly Spotlight newsletter
includes informative Staying Healthy Together articles for you
to read. You can also visit the Staying
Healthy Together web section on lacera.com to access
links to health-related web sites and find information on upcoming
workshops. (6-23-08)
20. Q:
Do all LACERA plan members qualify for retiree health
care benefits?
A: You are eligible to enroll in the LACERA-administered
Health Care Benefits Program if you are a member of LACERA and retire from
the County of Los Angeles or outside district; including the South Coast
Air Quality Management District, the Little Lake Cemetery District, the
Local Agency Formation Commission, and the County Superintendent of Schools.
Even if you did not have medical coverage under an employee health care
program while you were an active County employee, you are eligible to participate
in the program. (5-28-09) |
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1. Q:
Who qualifies for the $3,000 health care tax benefit under
the Pension Protection Act of 2006?
A: The Pension Protection Act of 2006 (PPA) permits eligible retired
Public Safety Officers (PSO) to exclude up to $3,000 of distributions from
their LACERA retirement plan for direct payment of health care premiums. (12-14-06)
2. Q: How
is Public Safety Officer defined under the PPA?
A: The
PPA defines Public Safety Officer as "an individual serving a
public agency in an official capacity, with or without compensation,
as a law enforcement officer, as a firefighter, as a chaplain, or as
a member of a rescue squad or ambulance crew."*
Under
this federal definition, duties of a law enforcement officer may
include control or reduction of crime, prosecution or adjudication,
and/or correction and detention. Supervision of these duties may
also fall within the federal PSO definition. (1-22-07)
*As
defined in the Omnibus Crime Control and Safe Streets Act of 1968
(42 U.S.C. 3796b(9)(A).
3. Q:
If I meet the definition of Public Safety Officer, are there other requirements to qualify for the $3,000 health care tax benefit?
A: In addition to meeting the PPA definition, the individual must
have separated from service as a PSO and retired on disability or attained
the normal retirement age. (Normal retirement age is 55 for safety plans A
and B, 57 for general plans A, B, C, and D, and 65 for general plan E.) (12-21-06)
4. Q: I'm an eligible Public Safety Officer. Can I pay my health
care premiums myself and still receive the $3,000 tax
benefit granted under the Pension Protection Act of 2006?
A: No. The law requires LACERA to exclude the funds from the distribution
of the Public Safety Officer's retirement plan and pay the premiums directly
to the insurance provider. (12-14-06)
5. Q:
I’m a general member, and believe I qualify as
a PSO. Can I participate in this tax benefit?
A: The definition of PSO includes Safety members who
are sworn employees in law enforcement (Sheriff and District Attorney
Investigators), firefighting, forestry, and lifeguard classifications.
The definition of PSO also appears to include certain General Member
classifications such as all probation officers, along with district attorneys
and court commissioners who handle criminal matters. Public defenders
and court officials assigned to civil matters and other general members
do not qualify.
Retired
LACERA members who can attest they meet the federal definition
of Public Safety Officer and the other eligibility requirements may
call 1-800-786-6464 to request an additional information
packet and an election form from LACERA. Updates on this
topic will be posted online at our web site as new information
becomes available. (6-04-08)
6. Q: Who has the final word in determining Public Safety Officer
status as it relates to the Pension Protection Act of 2006?
A: It is the responsibility of each individual to substantiate his or her PSO
eligibility. The individual's responsibility also applies in the event of an
IRS audit. PSO determinations will ultimately be made by the IRS. (1-22-07)
7.
Q: What are the advantages of excluding up to $3,000 from
my LACERA retirement plan distributions?
A: This is an IRS tax benefit. If you are an eligible PSO, you are
permitted to claim up to $3,000 of excluded funds from the taxable distribution
of your LACERA retirement allowance. (7-25-07)
8. Q: Both my spouse and I are eligible retired Public Safety
Officers. Can we exclude up to $3,000 from each of our
LACERA retirement funds?
A: Yes, under the Pension Protection Act of
2006 each of you would be eligible to exclude up to $3,000 from
your respective LACERA retirement funds for a total annual family
limit of $6,000. (12-14-06)
9. Q:
If my spouse or dependent, who is not an eligible Public Safety
Officer, survives me, will the $3,000 exclusion and tax benefit
granted by the Pension Protection Act of 2006 continue to apply
as a survivor benefit?
A: No. A survivor benefit does not apply. (1-18-07)
10. Q: Which insurance companies are currently eligible for LACERA
direct payments?
A: At this time, LACERA can make direct premium
payments (on a monthly basis) on the following LACERA-administered
health care plans:
Anthem Blue
Cross I, II, III
Anthem Blue Cross Prudent Buyer Plan
Kaiser Permanente/Kaiser Permanente Senior Advantage for CA Residents
Kaiser-Colorado, Georgia, Hawaii, Oregon
PacifiCare/Secure Horizons
SCAN Health Plan
Local 1014 Firefighters
CIGNA Network Model Plan
CIGNA HealthCare for Seniors Plan-Phoenix, AZ
CIGNA Indemnity Dental/Vision
CIGNA Dental HMO/Vision (2-7-08)
11. Q:
Which long-term care plans are eligible for LACERA direct payments?
A: If you meet all the other eligibility requirements, and you have
long-term care insurance through any carrier, the premiums are eligible for
LACERA direct payments on a monthly basis. However, your tax benefit on long-term
care plans not sponsored by LACERA does not automatically
apply for the entire year; rather, it begins with the first direct payment
by LACERA. (1-10-08)
12. Q: Will LACERA make direct payments to my health care plans on
an annual or semi-annual basis?
A: LACERA will only make direct health care
premium payments on a monthly basis. (1-18-07)
13. Q: I'm a retired Public Safety Officer with 25 years of County
service, and my health care plans are fully subsidized by LACERA.
Does the $3,000 tax benefit granted under the Pension Protection
Act of 2006 apply to me?
A: No. Since you have no premiums to pay, this
tax benefit does not apply to you. (12-14-06)
14. Q: I'm a Public Safety Officer retired on a service-connected disability.
My retirement allowance is non-taxable. Does the $3,000 IRS
tax benefit apply to me?
A: No. Since your retirement allowance (or retirement
plan distributions) is already non-taxable, the tax benefit granted
under the Pension Protection Act of 2006 does not apply to you. (12-14-06)
15. Q: Will I be required to renew this IRS tax benefit each year?
A: No. Opting for this IRS tax benefit is an "evergreen
election." This means once you complete the Election Form, your
election of this benefit remains in effect unless and until you
cancel it in writing. You do not have to renew it each year.
If you cancel your qualified plan(s), you also lose the benefit. (12-14-06)
16. Q:
Is there an open enrollment period for the IRS tax benefit
granted under the Pension Protection Act of 2006?
A: This is an IRS tax year election, which means eligible PSOs
can elect this benefit anytime. In most cases, it is also an IRS tax
year benefit; those who elect it anytime during the year receive the
tax benefit for the entire year. Conversely, if you cancel it anytime
during the year, you lose the tax benefit for the entire year.
Exception: The
tax benefit for long-term care premiums from carriers other than
MetLife and Transamerica begins with the first direct payment by
LACERA. (9-24-07)
17. Q: I'm an eligible Public Safety Officer, can I exclude the maximum
$3,000 of distributions from my LACERA retirement?
A: Under the Pension Protection Act of 2006,
you may exclude the lesser of $3,000 or the amount of the premiums
on your qualified health care plans. (12-14-06)
18. Q.
I worked as a PSO for many years, but I retired in a different
capacity. Am I eligible for this tax benefit?
A: No. Pursuant to section 845(4)(B) of the PPA,
to be eligible for this tax benefit, an individual must have separated from
County service as a PSO. (9-24-07)
19. Q:
How do I arrange for direct payment of the monthly premiums
on my long-term care insurance?
A: Pursuant to the Health Insurance Portability and Accountability
Act of 1996 (HIPAA), eligible PSOs who wish to have LACERA make direct payments
to their long-term care (LTC) plans must contact the carriers directly to authorize
the necessary payment agreement.
After LACERA
receives and reviews your Affidavit Attesting to PSO Status and
Election Form, you will receive a Member Enrollment Request for
you to complete and submit to your carrier. You will also receive
a New Carrier Enrollment Kit containing documents for you to forward
to your carrier. Your carrier must complete and submit those documents
to LACERA; we cannot initiate direct payments on your behalf until
we receive the proper documents from your LTC carrier. (7-25-07)
20. Q:
Is the Firefighters Local 1014 Plan eligible for LACERA direct
payments?
A: Yes. The IRS has interpreted Section 845 of the PPA to include
self-insured plans such as the Firefighters Local 1014 Plan. (7-25-07)
21. Q:
I am a probation officer. Do I meet the PSO definition?
A: The definition of PSO appears to include all probation officers.
Probation officers who meet the other requirements may be eligible for this
tax benefit. (3-13-07)
22. Q:
The portion of my LACERA service-connected disability that
exceeds 50 percent of my final compensation is taxable. Can
I participate in this IRS tax benefit?
A: If you meet all the other eligibility requirements,
you are eligible for this IRS tax benefit. However, your tax benefit
cannot exceed the amount of the taxable portion of your allowance. (3-6-07)
23. Q:
My heath care plans are fully subsidized by LACERA. Will the $3,000 tax benefit apply if I sign up for long-term care insurance?
A: Yes. If you meet all the other eligibility
requirements, you are eligible for this IRS tax benefit. However,
your tax benefit cannot exceed the amount of the taxable portion
of your allowance. (4-30-07)
24. Q:
Is the $3,000 PSO exclusion for payment of health care premiums reported to the IRS on Form 1009-R or Form 1040?
A: To receive this tax benefit, the eligible retired PSO must report the excluded
funds on IRS Form 1040 when filing his or her annual income tax return.
LACERA continues to monitor IRS guidelines on this subject and will update
you as new information becomes available. (1-22-08)
25. Q:
Am I eligible for the $3,000 retiree health care tax
benefit on my CalPERS-sponsored long-term care plan?
A: Yes. Begin by notifying CalPERS that you want to receive the benefit. CalPERS will then contact LACERA. If you don't already have a PSO Election Form on file with LACERA, you must submit one. The form is available online on the Brochures & Forms page of lacera.com. (2-4-08)
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SECTION I:
INFORMATION FOR ALL CONTRIBUTORY MEMBERS
1. Q: What types of service credit can be purchased?
A: Several
types of previous County service and certain other government
service may be purchased. Note: various eligibility requirements
apply.
Previous
County service may include:
- Temporary
County service
- Permanent
County Time prior to LACERA membership
- Redeposit
of Withdrawn Contributions
- Sick
Without Pay (SWOP)
- Conversion
of prior General service to Safety service
Other
government service may include employment with:
- U.S.
military
- U.S.
government (Federal)
- State
of California
- Other
public agencies within California
2. Q: I have three years and five months of prior service. May
I purchase that exact amount of service credit?
A: Yes.
The purchase of prior County and/or non-County service is permitted
on the basis of full-time months (provided eligibility requirements
are met).
NOTE: The amount of service credit you purchase
cannot exceed the length of the time period during which
the service was performed. For example, not more than 12
months of credit shall be allowed for all service in any
one period of 12 consecutive months.
3. Q: Where can I find the full descriptions, eligibility requirements,
contract terms, and calculation methods that apply to
each service credit category?
A: Those details can be viewed in the Benefits section
of lacera.com, or type Purchasing Service Credit in the Search box.
4. Q: What are the advantages of purchasing service credit?
A: LACERA
retirement benefits are based, in part, on service credit;
the more years of service credit you have, the higher your
monthly retirement allowance will be.
5. Q: How can I determine how a purchase of service credit will affect
my monthly retirement allowance?
A: Your
retirement allowance will be based upon four factors: retirement
plan, retirement age, years of service credit, and final compensation.
In Plans A, B, C, and D, final compensation is an average of
your highest monthly compensation during any one year. (Certain
restrictions may apply to deferred members.)
Tip: LACERA offers interactive online tools that
project how the addition of service credit will affect your
retirement allowance.*
Retirement
Calculator (in the Benefits section)
- Allows
you to enter your own data (including your years and months
of service credit).
- Uses
current actuarial tables to approximate your monthly retirement allowance.
- Displays
Unmodified and Unmodified+Plus Options allowances only.
Create Your Own Retirement Benefit Estimate (in
the My LACERA section)
- Most
accurate, detailed, and personalized Retirement Benefit
Statement you can create on
your own.
- Uses
your data currently on file as the basis of its calculations.
- Allows
you to create multiple estimates based on different scenarios.
*
The calculations generated by LACERA online tools are non-binding
and are intended for planning purposes only.
6. Q: Does service credit affect the cost of LACERA-administered
retiree health insurance?
A: Yes.
The County subsidizes retiree medical/dental insurance based
on a member’s years of service credit; the more service
credit you have, the more the County pays toward your premiums.
For a member with ten years of service credit, the County contributes
40 percent of the selected plan premium or 40 percent of the
benchmark plan premium, whichever is less. For each additional
year of service credit, the County contributes an additional
four percent, up to a maximum of 100 percent for a member with
25 years of service credit.
Other
conditions may apply; for more information call 1-800-786-6464
and press 1 to speak with a LACERA Health Care Benefit Specialist.
The percentage paid by the County is subject to change.
7. Q: I terminated service, withdrew my contributions, spent
time in the military, then returned to County Service.
May I redeposit my withdrawn contributions and purchase
my military service?
A: You
may either redeposit your withdrawn contributions or purchase
your military service; you may not do both. We recommend you
compare the benefits of each situation to determine which purchase
is more advantageous. A LACERA Retirement Benefits Specialist
can assist you in understanding the differences.
8. Q: Do special rules apply to service credit for military
service?
A: In
most cases, you may purchase service credit for time spent
in active military service. However, under certain conditions,
such as being called to serve during a time of war or national
emergency, the County may award you service credit (at no cost
to you) for military service that interrupts your County employment.
If you are eligible for a military pension now or will be in
the future, you cannot purchase credit for
that service. Contract terms for the purchase of credit for
military service vary depending on certain eligibility requirements.
For additional information speak with a LACERA Retirement Benefits
Specialist at 1-800-786-6464.
9. Q: How much does the service credit cost?
A: The cost of your eligible service varies depending
on your date(s) of membership in LACERA, the type of service
credit purchased, and your prior and/or current retirement
plan. The actual cost can’t be calculated until LACERA
receives your Application to Purchase Retirement Service Credit
and verifies your service. The
total lump-sum cost, including interest, is calculated through
the expiration date on the Payment Contract.
If
you choose to purchase service credit through monthly payroll
deductions, the purchase amount will include interest that
is calculated and applied over the entire term of the contract.
10. Q: I'm purchasing service credit. What payment options are available?
A: You have a choice of three payment options:
lump-sum payment, payroll deductions (on a before or after-tax
basis), or a combination of both.
- Lump-Sum
Payment: a single payment for the total cost
of your service credit, including
interest calculated through the contract expiration date.
- Payroll
Deductions: automatic monthly deductions from
your paycheck, determined
by dividing the total dollar amount of your contract
by the term (number of months) of your contract. Interest
is calculated over the
term of the contract; therefore, the total amount you pay through payroll
deductions is greater than it would be through a lump-sum payment.
- Combination Lump-Sum Payment/Payroll Deductions: allow
you to pay
a single up-front payment (in an amount you determine)
and pay off the balance of the contract through monthly
payroll deductions.
11. Q: What contract terms are available for purchasing service credit?
A: Terms vary according to the type of service
credit; some types must be purchased within five years and
others may be purchased within ten years. Terms on purchases
of temporary service or periods of absence without pay due
to illness are limited to the number of months you are purchasing.
The Payment Contract you receive from LACERA will indicate
your options regarding the length of your contract.
12. Q: How is interest calculated on my Payment Contract?
A: The formulas used vary according to the type of
service you are purchasing, the date you entered membership,
and your current and prior retirement plan. (For formula
details, visit the Benefits section of lacera.com)
On
purchases of previous County service, the cost
includes the interest your contributions would have earned
had they been on deposit with LACERA from the date you
became a member (or from the date you withdrew your funds)
to the expiration date on your Payment Contract.
The
cost to purchase other types of service credit is
based on the present value of the retirement benefits you
will receive (and not on back interest). Your current age
and salary are factors that most affect the purchase cost.
If
you choose payroll deductions, your monthly deduction
will be calculated using a projected semi-annual interest
crediting rate, set by the Board of Investments, for the
term of the contract. At the end of your contract, LACERA
will reconcile your balance and adjust your deductions
to prevent any over or underpayment.
13. Q: What is a semi-annual interest crediting rate?
A: According to the law, interest is credited
(at a rate set by the Board of Investments) to member contributions
on deposit in the retirement fund. Interest crediting is applied
twice a year (semi-annually) on June 30 and December 31 to
all member contributions that have been in the retirement fund
for at least six months immediately prior to the date of credit.
14. Q: What types of funds may I use to purchase service credit?
A: Under
the Pension Protection Act, service credit may be purchased
with any of these types of funds:
- Payroll
deductions (using before or after-tax dollars)
- Qualified
Plans: 401(k)/401(a)/KEOGH
- 457
Fund Plan Transfers: In-Service or after Termination
- IRAs:
Non-Roth/Non-After Tax
- 403(b)
- After-Tax
Dollars
15. Q: What is the significance of before-tax and after-tax dollars?
A: Before-tax dollars are funds that are not
subject to income tax at the time they are earned; rather, they become
taxable when you retire, terminate County service, or when your beneficiary
receives them upon your death. Payroll deductions and rollovers from
your County 457 plan and/or other tax qualified plans are examples of
before-tax dollars. The benefit of before-tax payroll deductions is that
it reduces your taxable income.
After-tax dollars
are funds — such as proceeds from mortgage refinancing
or savings accounts — that were subject to income tax
at the time they were earned. Since they have already been
taxed, they are not subject to income tax at retirement,
termination, or death. However, the interest earned on your
contributions is taxable.
If
you use after-tax dollars for a lump-sum payment, a portion
of your retirement allowance equal to the amount of after-tax
dollars you paid will be considered non-taxable income. That
portion will be excluded from taxability until you have recovered
the full amount of your non-taxable payment.
Consult
with a professional advisor regarding tax and legal matters
pertaining to your individual situation; LACERA does not
offer tax or legal advice. (6-27-08)
16. Q: Will I be permitted to change or revoke my contract after
I sign it?
A: The
ability to change or revoke your contract depends on the type
of payment method you select:
- Once
you sign a contract that includes before-tax payroll deductions
and/or payments using other before-tax funds, the
contract is irrevocable.
- Only
contracts based on payments made exclusively with after-tax dollars may
be revised or revoked.
If
you revoke your after-tax dollar contract before it is paid
in full, LACERA will prorate the amount you have paid and
credit your account for years and months of service credit
accordingly. This does not apply if you are redepositing
withdrawn contributions. If you do not complete the redeposit
of your withdrawn contributions, your prior County service
will not be restored.
In
either case, LACERA cannot refund the money you
already paid until you retire or terminate County service;
if you die, the money will be paid to your beneficiary.
17. Q: Will the years and months of service credit I purchase
count toward meeting the minimum service credit requirement
to retire?
A: If you are currently a member of Plan A,
B, C, or D (and have never been in Plan E), service credit
you purchase for prior County service will count toward the
10-year service credit minimum required for a service retirement.
It will also count toward the five years required for a nonservice-connected
disability retirement, pre-retirement survivor benefits, or
to defer your retirement.
18. Q: What happens if I receive a disability retirement before
completing my Payment Contract?
A: If
you are granted a disability retirement before completing your
Payment Contract, your account will be credited for the years
and months of service credit paid up to the date your disability
retirement was granted. If you elect to complete the Payment
Contract, you must do so within 120 days of the date your disability
was granted.
SECTION II: FORMER PLAN E MEMBERS
1. Q: Under what circumstances are former Plan E members permitted
to purchase credit for service prior to LACERA membership?
A: As a former Plan E member, you may purchase
certain types of prior service listed in Question 2, provided:
- You
completed a transfer to Plan D from Plan E, or
- After
a prior period of LACERA membership totaling less than
ten years (non-vested), you
returned to County service and reentered LACERA as a Plan
D member.
2. Q: I was previously a Plan E member. What type of service
credit am I eligible to purchase?
A: The
following types of service credit may be purchased by former
Plan E members, subject to eligibility:
- Temporary
County service performed before you became a
LACERA member.
- Non-vested Plan E service if you worked less than
ten years as a Plan E member, then terminated County service.
- Prior
Plan A, B, C, or D service if you terminated
County service, withdrew
your retirement contributions, later returned to County
service as a Plan E member,
and subsequently became a Plan D member.
- Non-County Service: Employment, prior to the date
you became eligible for LACERA membership, by any of the
following agencies:
- U.S.
government, including military service
- State
of California
- Any
public agency in California
NOTE: These purchases of service credit will increase
your total years of service credit, but will not count
toward meeting the minimum service credit requirement to
retire.
SECTION III: INITIATING YOUR SERVICE CREDIT PURCHASE – ALL
CONTRIBUTORY PLANS
1. Q: How do I initiate a service credit purchase?
A: Review the details on the various types of
service credit and the qualifications for purchase in this
brochure and online in the Benefits section of lacera.com.
If you believe you qualify, complete an Application to Purchase
Retirement Service Credit and return it to LACERA. The application
can be accessed on the Brochures & Forms page of lacera.com,
or can be ordered by calling 1-800-786-6464.
2. Q: What happens after I submit my purchase application to
LACERA?
A: After verifying your service and calculating
the cost to purchase it, we will send you a Cost Notification
Letter, along with a Service Credit Payment Schedule and Payment
Contract.
3. Q: When do I begin making payments?
A: If you select monthly payroll deductions, your
deductions will begin on the 15th of month, within 30-45 days
of LACERA’s receipt of your signed Payment Contract.
On some contracts (depending on the type of service credit
you are purchasing) you may choose the month your deductions
begin, provided the month you select is prior to the contract
expiration date. For additional information, call 1-800-786-6464
to speak with a LACERA Retirement Benefits Specialist.
On
lump-sum payments, you must include your check or money order
with your signed Payment Contract. If you use a rollover
or transfer for a lump-sum payment from a Horizons 457 Plan
or County 401(k) Plan, you must call Great-West at 1-800-947-0845
to request a rollover/transfer form and send the completed
and signed form to LACERA. For rollovers of other before-tax
funds, you must sign and complete the member section of a
LACERA Rollover/Transfer Certification Form and send the
form to your plan administrator to complete, sign, and return
to LACERA. We must receive a completed and signed Rollover/Transfer
Certification Form directly from the Plan Administrator before
your rollover or transfer can be accepted. An interactive
Rollover/Transfer Certification Form is available online
on the Brochures & Forms page of lacera.com.
4.
Q: What happens if I retire, terminate County service,
or die before completing my Payment Contract? A: If you terminate employment or retire before
your contract is paid in full, you may complete payment within
120 days after your termination or retirement date. If you
die, your eligible surviving spouse or domestic partner (or
minor child) would be eligible to complete payment within
120 days after the date of death. If not paid in full, the
retirement allowance or survivor allowance would be prorated
to include service credit for whole months already paid.
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1 Q:
What is the difference between a general Power of Attorney
and a durable Power of Attorney?
A: A general Power
of Attorney terminates upon the member becoming mentally incapacitated.
A durable Power of Attorney remains in effect even if the member becomes
mentally incapacitated. Both instruments terminate upon the member's death.
(6-27-08)
2 Q: Why is LACERA's Power of Attorney called a Special Durable
Power of Attorney?
A: Special refers to the fact it can only be used for LACERA
retirement matters.
(6-27-08)
3 Q: Does LACERA accept Power of Attorney designations that
are not on the LACERA form?
A: Yes. However, the main advantage in executing
the LACERA Special Durable Power of Attorney is that it contains the
durable clause and specifically shows your intent to have your Attorney-In-Fact
conduct your retirement business with us. (6-27-08)
4 Q: Does LACERA charge a fee for the Power of Attorney service?
A: No. (6-27-08)
5 Q: Can I still handle my own retirement affairs with a Power
of Attorney on file?
A: Yes. With any
type of Power of Attorney form on file, you may still take care of your
own retirement affairs. If you become too ill to handle your own affairs,
your designee will be able to handle them for you if you have executed
a durable Power of Attorney. (6-27-08)
6 Q: When should I send my Power of Attorney to LACERA?
A: You
can send in your Power of Attorney form once it is completed
or your Attorney-In-Fact may send it to us when the need first
arises to transact business on your behalf. You do not have
to file your Power of Attorney with LACERA before it is necessary
to use it.
TIP: LACERA
recommends you keep your completed Power of Attorney form
where it is accessible to your Attorney-In-Fact. This can
ease distress for you and your family if there comes a time
when you are not able to handle your own retirement affairs.
We advise keeping a photocopy of the original form for your
records. (6-27-08)
7 Q: Can I use the LACERA Special Durable Power of Attorney
to appoint an administrator of my estate prior to my
death?
A: No. You
cannot use the LACERA Special Durable Power of Attorney to appoint an
administrator of your estate prior to your death. (6-27-08)
8 Q: Would it be practical to have my spouse or domestic partner
(my named beneficiary) execute the LACERA Special Durable
Power of Attorney form?
A: Yes. It
be a good idea to have your spouse or domestic partner (named beneficiary)
execute the LACERA Special Durable Power of Attorney form. (6-27-08)
9 Q: Can I terminate my LACERA Special Durable Power of Attorney?
A: Yes, as long
as you are still competent and you submit written notification to LACERA
directing the document to be revoked or terminated. (6-27-08)
10 Q: Can I execute the Special Durable Power of Attorney outside
of California?
A: Yes,
as long as it is properly notarized or witnessed as required
on the form. (6-27-08)
11 Q: Can I use my California Power of Attorney for Health Care
for LACERA retirement matters?
A: No. That document
applies to health care matters only. (6-27-08)
12 Q: Why does Section 6: Notice to Person Executing This Document on the LACERA Power of Attorney form seem to contradict information in the brochure?
A: California Probate
Code §4128 requires the warning in Section 6 to be included
on all pre-printed Power of Attorney forms that may extend authority
to the Attorney-In-Fact beyond the time in which an individual becomes
disabled or incapacitated.
NOTE: The information
in the brochure is accurate as it applies to LACERA's Special
Durable Power of Attorney; LACERA's Special Durable Power
of Attorney only deals with your retirement benefits and
does not cover your real or personal property. (6-27-08)
13 Q: How can I change my Power of Attorney?
A: If
you want to change your Power of Attorney:
-
Complete a new
Power of Attorney form reflecting the changes you wish
to make.
-
Inform everyone
who has a copy of your previous Power of Attorney that it
is no longer valid. Ask them to return copies of the
outdated form to you so you can destroy them.
-
Give copies of
your updated Power of Attorney to the people who may
need them to carry out your wishes. (6-27-08)
14 Q: If I designate my spouse or domestic partner as my Attorney-in-Fact
and I become incapacitated, what actions is he or she
permitted to take on my behalf?
A: If your spouse
or domestic partner is your Attorney-in-Fact, he or she is permitted
to:
-
Elect any retirement
option on your behalf, including the Unmodified Option
or Unmodified+Plus Option
-
Designate any beneficiary(ies)
on your behalf, including your minor child(ren)
-
Make address changes
-
Make tax withholding
elections
-
Access information
regarding your benefit payments
-
Endorse checks (6-27-08)
15 Q: If I designate a non-neutral person as my Attorney-in-Fact
and I become incapacitated, what actions is he or she
permitted to take on my behalf?
A: If your Attorney-in-Fact
is your child, grandchild, or other blood relative, or is related to
you through marriage, or is a named beneficiary, he or she is permitted
to:
-
Elect either the
Unmodified Option or Unmodified+Option on your behalf
-
Designate your
minor child(ren) as your beneficiary(ies)
-
Make address changes
-
Make tax withholding
elections
-
Access information
regarding your benefit payments
-
Endorse checks (6-27-08)
16 Q: If I designate a neutral person as my Attorney-in-Fact
and I become incapacitated, what actions is he or she
permitted to take on my behalf?
A: If your Attorney-in-Fact
is not related to you and not your beneficiary, he or she is permitted
to:
-
Elect any retirement
benefit option on your behalf, provided he or she does
not benefit from it
-
Designate any beneficiary
your behalf, provided he or she does not benefit from
it
-
Make address changes
-
Make tax withholding
elections
-
Access information
regarding your benefit payments
-
Endorse check (6-27-08)
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LACERA |
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SECTION
I: GENERAL INFORMATION
1. Q:
What is "My LACERA"?
A: My LACERA is a web feature on lacera.com
that provides members with secure 24-hour access to their personal
retirement benefit information. It serves as your personal
online file cabinet for all things LACERA, including your membership
information, retirement plan information, annual benefit statement,
and history of your LACERA interactions. My LACERA also allows
you to create your own Retirement Benefit Estimate,
a personalized, preliminary online calculation of the benefits
you will receive when you retire.
My
LACERA continues to expand. Interactive features that will
allow you to adjust your personal information online are
currently under development. You can access the My LACERA
icon from the lacera.com home page, or the left side bar
of each web page to register. You can also read more about
this feature at About
My LACERA. (9-11-08)
2. Q:
Can I use My LACERA to find out how much money I have
in my retirement account?
A: Yes. My LACERA displays the current total
of your retirement contributions and interest. Your contributions
are updated each month, and interest is accrued at the end of
June and December. If you haven't already, click
here to register on My LACERA. (9-11-08)
3. Q:
Can I get a Retirement Benefit Estimate on My LACERA?
A: Yes. Once signed in to My LACERA, click
on Retirement Benefit Estimate on the
navigation bar located on the left margin of each page.
An online "wizard" takes you step by step through
the variables involved in estimating your retirement allowance.
If
you are an active member, My LACERA will display your current
retirement plan, your contributions (not applicable to Plan
E) and service credit, your average monthly salary, and more!
You can also read more about this feature at About
My LACERA. (9-9-08)
4. Q:
What's the difference between the Retirement Calculator
and the Retirement Benefit Estimate feature on My LACERA?
A: The Retirement Calculator
is an interactive planning tool that uses the data
you enter to create projections of the monthly allowance you
will receive when you retire. The Retirement Calculator will
not automatically retrieve your personal data as the Retirement
Benefit Estimate feature does. To use the Retirement
Calculator, you must provide the following information:
- Your
plan
- Your
age at retirement
- Your
years and months of service credit at retirement
- Your
final monthly compensation
The Retirement
Calculator can only create projections based on
the Unmodified and Unmodified+Plus options. The Retirement
Benefit Estimate feature on My LACERA allows you
to adjust years of service, salary, and other information
to find the best retirement options for you. (9-4-08)
5. Q:
How does the Retirement Benefit Estimate feature on My
LACERA work?
A: The Retirement Benefit
Estimate feature contains an online "wizard" that
takes you step by step through the variables involved in estimating
your retirement allowance. The wizard shows you:
- The
date you first become eligible to retire
- How
specific retirement dates and the value of additional service
credit can increase your retirement allowance
- The
various retirement options available to you (6-25-08)
6: Q:
I don't understand some of the retirement terms used
on My LACERA. Are these terms explained any where?
A: When you use the Retirement
Benefit Estimate feature on My LACERA, each page includes
retirement tips and definitions of terms to help you through
the process. Here are a few of the tips you will find:
- Most
advantageous dates to retire
- Reduce
the cost of retiree health care insurance with full years
of service credit
- Documents
you will need to submit to LACERA prior to retiring
- Maximizing
your retirement benefits by purchasing previous service
credit (military, County temp, etc.) or Additional Retirement
Credit (ARC) prior to your retirement (9-5-08)
7: Q:
I'm eligible to retire now. How do I use the Retirement
Benefit Estimate feature on My LACERA?
A: Click on Retirement
Benefit Estimate on the navigation bar located on
the left margin of each page. You will see two paths:
1) The Quick Calculation option provides the quickest
route to create your estimate if you are eligible to retire now or within
six months.
2) The Calculation with Bonus Tips takes you step by
step through the process with helpful tips along the way. (9-11-08)
8. Q:
Will the Retirement Benefit Estimate feature on My LACERA
show me what Retirement Options are available?
A: Yes. The Retirement Benefit
Estimate feature on My LACERA will outline the retirement
options available to you.
Within
the program, you can enter different percentages for your
survivor or beneficiaries and the RBE results will display
how each scenario will affect the amount you and your survivor/beneficiaries
will receive. It also displays a detailed description of
each of the retirement options. (9-4-08)
9. Q:
I recently contacted LACERA to request a change of address.
Can I see documentation of this interaction on My LACERA?
A: Yes. Once you're signed in on
My LACERA, any interactions you've had with LACERA will be
displayed on your "My LACERA PAGE" under "Interaction
History." (9-11-08)
10. Q:
I am currently purchasing previous service credit. Can
I see how much I have left to pay on my contract?
A: Yes. On your "My LACERA
PAGE," you can see the amount you have already paid on
your previous service contract and the amount of payments and
months you have remaining on your contract. (9-4-08)
11. Q:
I'm a contributory member. Where can I see my retirement
contribution rate/percentage?
A: On My LACERA, your contribution
rate is displayed in the Retirement Plan Information section.
You can also see the amount of your total contributions. (9-4-08)
12. Q:
Can I make changes to my personal information on My LACERA?
A: Not yet. However, this is in
the works. Soon we will be adding interactive features to My
LACERA to allow you to make changes directly online to your
personal information, such as address changes, beneficiary
changes, and retiree tax withholdings. (9-11-08)
13. Q:
Is My LACERA a secure site?
A: Yes. We have excellent security
devices and precautions in place to protect your member information.
The protections include our authorization process and firewalls
as well as encrypted coding for both receiving and sending
information. You may view our Entrust Secure Server Certificate
online, by clicking on the padlock in the bottom right corner
of your My LACERA web page. Additionally, My LACERA undergoes
routine security audits by a professional third-party security
firm. An extra security feature called Safe2Login is in place,
as well. The Safe2Login box appears when you sign in. Registering
on this added security feature provides another layer of protection
for your private information. (9-11-08)
SECTION
II: REGISTRATION
1. Q. Who can register for
My LACERA?
A. Both active and retired members
can access their personalized retirement information on
My LACERA. Currently, access for deferred members and survivors
is not available. (9-11-08)
2. Q:
How can I sign up for "My LACERA"?
A: To register, go to the home page
of lacera.com or look to the left side bar of each web page
and click on the My LACERA icon. There you will first register
on Safe2Login, a newly-added security safeguard designed to
protect your private retirement information on your My LACERA
account. Once your Safe2Login registration is complete, you
will create your My LACERA account using an email address and
password. For more information about Safe2Login, click
here. You can also check out our Safe2Login
FAQ. (9-11-08)
3. Q:
What information should I have handy in order to successfully
register on My LACERA?
A: During the My LACERA registration
process, you will be asked different types of questions about
your Retirement Plan, your latest contributions or tax amounts,
and other personal identifying information. If you are an active
member, it will be helpful to have your latest paycheck on
hand. The questions you are prompted to answer during the registration
process are established to increase the security and protection
of your personal information. (9-11-08)
4. Q:
What happens if I can't register on My LACERA?
A: Don't worry. You have
two attempts to register online. After that you may call LACERA
at 1-800-786-6464 and one of our Retirement Benefits Specialists
will assist you. Our Call Center hours are 7:00 AM to 5:30
PM PST Monday through Friday. (6-25-08)
5. Q:
After I register on My LACERA, what if I try to sign
in but can't remember my password?
A: You will have three attempts
to sign in. If that doesn't work give us a call at 1-800-786-6464
and we will help you with the process. (9-11-08)
6. Q:
My wife and I both work for the County and share the
same email account. Is this going to cause a problem
with registering our "My LACERA" accounts?
A: Yes. One of you will have to
create another email account. Our system is set up to register
only one individual per email address. (9-11-08) |
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1. Q: Does
LACERA pay a death/burial benefit to the beneficiary of a retired
member?
A: Yes. All LACERA retirement plans include
a lump-sum death/burial benefit of $5,000 payable to the beneficiary upon the
death of a retired member. (3-21-08)
2. Q: I
am the spouse of a deceased member, but I am not the
named beneficiary. Am I eligible to receive death benefits?
A: The
rights of a surviving spouse or domestic partner of an active
member who dies before retirement may take precedence over
the rights of any other named beneficiary. For additional
information, call 1-800-786-6464 to speak with a LACERA Retirement
Benefits Specialist. (7-26-06)
3. Q: How
long will I have to wait to receive my survivor benefits?
A: Death
benefit payments to survivors begin one payroll cycle after LACERA
has been notified of the member's death. Death benefit payments
to named beneficiaries begin 30 days from the date all required
documents have been received by LACERA. Required documents are:
claim forms, death certificate, original certified marriage license
or Certificate of Registered Domestic Partnership, and original
certified birth certificates. (9-8-06)
4. Q:
Do I have to provide the Social Security Number of the person
I wish to name as beneficiary?
A: A
Social Security Number (or Tax Identification Number) is required before
any benefits can be paid. If a member doesn't have a number at the
time of beneficiary designation, LACERA must receive this information
when the death claim is processed. (6-26-06)
5. Q:
I am the survivor of an active Plan E member who just died.
Who do I contact?
A: Since
Plan E does not provide pre-retirement death benefits, the spouse or
domestic partner of a deceased active Plan E member should contact
the County's Long-Term Disability and Survivor Benefits Plan representative
at 213-351-6404. (6-26-06)
6. Q: I
am the widow of an LA County employee, and I receive a monthly
check from LACERA. Will I lose any of that benefit if I decide
to remarry?
A: No, you will not lose any of your benefit.
Your survivor allowance is paid for the rest of your life, regardless
of any change in your marital status. (3-29-07)
7. Q:
Are taxes withheld from the $5,000 death/burial benefit
which is provided for retired members?
A. Yes. LACERA is required to withhold 20 percent
in federal income tax, and if you reside in California, LACERA
must withhold an additional 2 percent in state tax.
However,
your benefit payment may be eligible for rollover by you
or LACERA to a traditional IRA or an eligible employer plan
which would allow you to postpone taxation of that benefit
until it is paid to you. You have 60 days after you receive
the Benefit Payment to roll over all or part of it to a traditional
IRA or to an eligible employer plan that accepts your rollover.
Please
Note: Your payment cannot be rolled over to: Los Angeles
County's 401(k) Savings Plan and Horizons 457 Plan, a Roth
IRA, a SIMPLE IRA, or a Coverdell Education Savings Account
(formerly known as an education IRA).
More
specific information on the tax treatment of payments from
qualified employer plans is available in IRS Publication
575, Pension and Annuity Income, and IRS Publication 590,
Individual Retirement Arrangements. These publications are
available from your local IRS office, online at www.irs.gov,
or by calling 1-800-TAX-FORMS. (5-12-08) |
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1. Q: How can I speak in person with a LACERA Retirements Benefits Specialist?
A: One-on-one consultations with a Retirement Benefits Specialist are available at our Public Counter on a walk-in basis Monday through Friday from 7:00 a.m. to 5:00 p.m. Appointments may also be scheduled by calling 1-800-786-6464. (6-27-06)
2. Q: Where is LACERA located?
A: LACERA is located in Gateway Plaza at 300 N. Lake Avenue, in Pasadena. (6-27-06)
3. Q: How can I get LACERA brochures or forms?
A: LACERA brochures and forms can be conveniently accessed for viewing, printing, and/or ordering on our Brochures & Forms page. (6-27-06)
4. Q: What is “My LACERA”?
A: My LACERA is a web feature that provides members with secure 24-hour access to their personal information. It serves as your personal online file cabinet for all things LACERA, including your membership information, retirement plan information, annual benefit statement, and recap of your recent LACERA interactions. You can register for My LACERA from the lacera.com home page. (6-27-06)
5. Q: How can I sign-up for “My LACERA”?
A: To register, go to the home page of this web site and click on the My LACERA icon. When registering, it will be helpful to have your most recent paycheck stub handy. Once you're registered, you will only need to enter your email address and password to enter. (6-27-06)
6: Q: How do I advise LACERA of my new address?
A: Active County employees should report a change of address to their department personnel office. Your Personnel Office will forward the information to LACERA.
Retired and deferred members may report the change by calling LACERA at 1-800-786-6464 or by completing a change of address form and returning it to LACERA. You can download a copy from our Brochures & Forms page. (12-21-06)
7: Q: How does a Defined Benefit plan differ from a Defined Contribution plan?
A: In a Defined Benefit plan, the employer promises to pay a specified benefit upon the plan holder's retirement. That benefit is a lifetime benefit, paid to the recipient for the rest of his or her life. The employer invests the funds in a defined benefit plan and bears the risk of adverse investment performance.
Defined Contribution plans, such as 401(k) and 457 plans, are savings accounts. Benefit payments (withdrawals) under these plans stop when your money runs out. In these types of plans the employee decides how to invest the funds, and bears the risk of adverse investment performance. Benefit amounts in defined contribution plans are determined by investment performance and amount of contributions.
LACERA's retirement plans are defined benefit plans and provide a guaranteed monthly allowance paid for the rest of the member's life. LACERA benefits are based on your final average salary, retirement age, and years of service. (6-26-06)
8: Q: Which member services can be done over the phone?
A: The Retirement Benefits Specialists in LACERA's Call Center will assist you in completing the following procedures over the phone. Give them a call at 1-800-786-6464.
- Retired Members, Survivors: Enroll in Direct Deposit
- Retired and Deferred Members, Survivors: Change of Address
- Active and Retired Members: Change of Beneficiary(ies)
- Active, Retired, Deferred Members, and Survivors: Name Change (10-2-06)
9: Q: Where can I find information about the 457 and 401(k) plans?
A: The Los Angeles County 401(k) Savings Plan and Horizons 457 Plan are defined contribution (DC) savings plans sponsored by Los Angeles County and administered by Great-West Retirement Services. For enrollment and account information, visit www.countyla.com or call 1-800-947-0845. (3-29-07)
10. Q: I
worked for LA County many years ago. Am I eligible for
a retirement benefit?
A: If you are wondering about your eligibility, call us at 1-800-786-6464. Our Retirement Benefits Specialists can access your records with your Social Security Number or Employee Number. (3-29-07)
11. Q: I
need to report the death of a relative who worked for
LA County. What information does LACERA need?
A: If your deceased loved one was an LA County employee or LACERA retiree, please contact LACERA at 1-800-786-6464. Our staff will provide the information you need to know about required documents and any available death benefits. (3-29-07)
12. Q: Can I do any retirement transactions online?
A: Your personal retirement information is available on My LACERA, including your service credit, contributions, annual benefits statement, and recent contacts with LACERA. You can create your own preliminary Retirement Benefit Estimate online. Registration is easy, and accessing your information is safe and secure. New interactive features will be released soon, after passing a rigorous security audit. Meanwhile, call 1-800-786-6464, and our staff will process your address change, beneficiary change, and direct deposit requests by phone. (3-29-07)
13. Q: I want to file my taxes early this year. When will I get my information from LACERA?
A: LACERA mails a Form 1099-R to all retirees, survivors, and beneficiaries each year by the end of January. The Form 1099-R reports all the income you received from LACERA during the previous year. (3-29-07)
14. Q: Who is on the LACERA's Boards?
A: We provide bios for LACERA's Board of Retirement and Board of Investments members in the About LACERA Board section. In addition, you can see photos of each board member and access the agenda and minutes of each board and committee meeting. (4-6-07)
15. Q: I am looking for something I read in a recent newsletter. Where can I find it?
A: You can find past issues of our LACERA newsletters – PostScript and Spotlight – in the Communications section. A list of the topics addressed in each newsletter will help you find the article you want. (4-6-07)
16. Q: How can I keep track of LACERA’s financial situation?
A: Our Investments section includes our annual reports, which provide information about LACERA’s investments as of the fiscal year end, June 30th. Our fund is very healthy. You may choose the Popular Annual Financial Report (PAFR) for a quick overview, or the Comprehensive Annual Financial Report (CAFR) for a complete report with all the pertinent statistics and actuarial information. This section also includes actuarial and corporate governance reports, plus detailed information about LACERA’s real estate investments. (4-6-07)
17. Q.
I am currently working, what section of the web site
should I look at for information?
A: On lacera.com, go to the Benefits tab and visit our Active Member section. You’ll find information about plan transfer, service credit purchase, or ARC purchase. In the Calculators section, try the Plan Transfer, ARC, and Retirement calculators for instant cost and benefit estimates. You may also read about the process of applying for retirement and view the Pre-Retirement Workshop schedule. (4-6-07)
18. Q:
Why is there a wait at certain times to talk to someone
in the call center regarding benefit questions?.
A: LACERA is committed to providing you with the best customer
service possible. However, there are times when our call center staff is
inundated with member questions on new retirement legislation or policies
that are periodically enacted.
You
can also email your questions to us at welcome@lacera.com or
visit our Public Counter (no appointment required, first
come-first served), 7:00 a.m. to 5:00 p.m. Monday - Friday.
You
can also find answers to many retirement benefit questions
here in the Frequently Asked Questions (FAQs) section. (5-12-08)
19.
Q. I have been away from the
County for a while. How do I find out my retirement benefits
with the County?
A. If you have questions about what retirement
plan you are in or your retirement benefits with LACERA,
call us at 1-800-786-6464. If you terminated County service
and deferred your retirement or established reciprocity
with another agency, please keep LACERA informed of any
address changes. If you are a deferred member, your most
recent Annual Benefits Statement includes your service
credit and, if you are eligible to retire now, an estimate
of your allowance. (5-27-08)
20. Q.
I’m having trouble accessing the My LACERA page.
How can I get assistance?
A. For assistance in registering for My LACERA
or accessing your information on My LACERA, please contact a
Retirement Benefits Specialists at 1-800-786-6464. (5-28-08)
21. Q.
When I email questions or send correspondence to LACERA,
should I provide my social security number?
A. For safety purposes you should not include
your social security number on any emails or correspondence
you send to LACERA. We only need your first and last name to
access your retirement information and respond to your questions.
You can also call LACERA at 1-800-786-6464 and address your
questions to a Retirement Benefits Specialist. (6-09-08)
22. Q.
Who can register for My LACERA?
A. Only
active and retired members can register. If you are
an active member, you can create your preliminary Retirement
Benefit Estimate on My LACERA. The Retirement Benefit
Estimate feature will provide a personalized estimate (based
on your actual data) of the benefits you will receive when
you retire. You can access the My LACERA icon from lacera.com
to register. You can also read more about this feature at About My LACERA.
Currently, access for
deferred members and spouses is not available. (6-11-08)
23. Q.
What are the Call Center hours?
A. Our Retirement Benefit Specialists in our
Call Center are available to assist you and answer your questions
from 7:00 a.m. to 5:30 p.m., Monday through Friday at 1-800-786-6464. (10-24-08)
24. Q.
How long will LACERA keep my employment and retirement
information on file?
A. LACERA has your County employment and retirement
plan information stored in secure computer systems, and we will
keep your records on file forever. Therefore,
it is important to notify LACERA if you have a change of address
so we can contact you regarding your retirement benefits if necessary. (10-24-08) |
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6/12/09
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