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Retirement Plan E — General Member

SECTION 1 | Welcome to Plan E


About Your LACERA Defined Benefit Plan

All LACERA retirement plans are defined benefit plans; as such they promise to pay a specified monthly benefit at retirement. The monthly allowance you will receive at retirement under Plan E is a lifetime benefit, payable every month for the rest of your life.*

The funds in your defined benefit retirement plan are invested by LACERA. You do not bear the risk of adverse investment performance. Benefits granted under Plan E are determined solely by the provisions set forth in the Plan; they are not affected by market volatility. This differs from a defined contribution plan such as a 457 or 401(k) plan, in which you make the investment decisions and bear the associated risks. In those types of plans, your benefit payments stop when the money is exhausted.

Your LACERA Plan E retirement benefits will not run out; you cannot outlive them.

*Certain eligibility rules apply.

Three Factors Determine Your Retirement Benefits

The specifics of your retirement benefits are determined by your age at retirement, amount of service credit, and final compensation — in accordance with the provisions of your Plan. Any Plan E member who meets the minimum age and service requirements may retire for service and receive a monthly lifetime retirement allowance.

Plan E is a non-contributory plan. That means you do not contribute to it; only the County (or outside district) contributes to it. Rates for the County’s contributions are recommended by LACERA’s actuary.*

*Plan E contributions made by the County or outside district are credited to the Employer Reserve Account and are not refundable to you or to your employer.

SUMMARY OF PLAN E PROVISIONS

THE BASICS
Contributions

Member does not make contributions

Employer makes contributions

Vesting

After ten years of County (or combined County and reciprocal system) service credit

Retirement Eligibility

Age 55 with 10 years of County (or combined County and reciprocal system) service credit

Age 70, regardless of years of service credit

UPDATE: 9-13-13

Final Compensation

Based on highest monthly average of compensation earnable during any three 12-month periods of service, whether or not consecutive

Maximum Retirement Allowance

Equal to 80 percent of final compensation*

*Subject to employee benefit limits set forth in the Internal Revenue Code.

BENEFIT ENHANCEMENTS*

Purchasable Service Credit

Additional Retirement Credit (ARC) purchased prior to January 1, 2013

May not purchase County and non-County employment prior to LACERA membership

Reciprocity

Protects retirement benefits when employees transfer between reciprocal public agencies

Retiree Healthcare

Eligible for LACERA-administered retiree healthcare benefits

Cost-of-Living

Retirement allowance eligible for cost-of-living (COLA) increases

*Certain eligibility requirements apply.

DISABILITY, DEATH, AND SURVIVOR PROVISIONS

Disability Benefits

LACERA does not pay disability benefits if an active or vested, deferred member becomes disabled

Death Benefits

LACERA does not pay death benefits if a member dies in active service

LACERA pays $5,000 death/burial benefit when a retired member dies

Continuing Benefits

Upon the death of a retired member, LACERA pays up to 100 percent of the member’s retirement allowance to an eligible survivor or eligible designated beneficiary*

*Certain eligibility conditions and restrictions apply.

BENEFITS PROVIDED BY LOS ANGELES COUNTY

Retiree Healthcare Subsidy

County subsidizes retiree medical/dental insurance based on a minimum of 10 years of service credit

Disability Benefits

County pays disability benefits in the event an active member becomes disabled*

Death Benefits

County pays death benefit in the event an active member dies

Life Insurance

County provides $10,000 life insurance benefit for active members who die in service**

*Certain eligibility conditions and restrictions apply.
**Eligible employees may purchase additional coverage. County-sponsored life and disability insurance benefits and options vary for MegaFlex participants. LACERA does not administer these benefits; contact your Department for details on County-sponsored and/or administered insurance benefits.

When Are You Eligible for Retirement?

Members of LACERA Plan E are eligible to retire when they meet either of the following conditions:

  • At age 55 with 10 or more years of County (or combined County and reciprocal system) service credit
  • At age 70, regardless of years of service credit

A vested member of Plan E who terminated County service prior to retirement (deferred) is eligible to receive a retirement allowance upon fulfilling the minimum age and service requirements.

Advantage of Remaining in Active Service: Ages 55-65

Between the ages of 55 and 65, each year on your birthday, the amount of the allowance you will be entitled to receive upon retirement increases. In other words, the older you are when you retire, the greater the monthly allowance you will receive. (There is no additional age benefit after age 65.)

Your retirement allowance is based on a percentage of your final compensation, and age is one of the factors used to determine that percentage. Between the ages of 55 and 65, on every birthday, that percentage increases.

EXAMPLE: Plan E Member with $5,000 Final Compensation

Age at Retirement 62 yrs. 63 yrs. 64 yrs. 65 yrs.
Service Credit 20 yrs. 21 yrs. 22 yrs. 23 yrs.
Percentage of Final Compensation 29.31% 34.07% 39.59% 46.00%
Monthly Allowance $1,466 $1,704 $1,980 $2,300