Prospective Plan Transfer
A Prospective Plan Transfer (PPT) is a simple plan change; you switch from Plan E to Plan D and begin making the monthly contributions. Other key points of a PPT are:
- Your Plan D contribution rate is based on your current age.
- You become a Plan D member the first day of the month following 30 days after your application is received by LACERA.
- You become eligible for disability and survivor benefits upon meeting certain service requirements. (See Disability Retirement.)
- You are not required to purchase any of your Plan E service credit, but you have the option to convert some or all of your Plan E service credit to Plan D.
- Upon completion of payment to convert your Plan E service credit, your Plan D contributions are computed based on your age at the birthday nearest the first date of the service period you purchased.
- When your transfer is effective, you will not be eligible to transfer back to Plan E for three years from your effective date of transfer to Plan D. (Certain disabled prospective plan transferees may be exempt from the three-year waiting period. Contact us for more information.)
- Once you elect a PPT, you may not elect an Open Window Plan Transfer (OWPT).
You can purchase and convert Plan E service credit using any of the following methods:
- Payroll deductions
- Qualified 401(k), 401(a) or Keogh* plans Qualified 401(k)/401(a) or Keogh* plans (*Certain restrictions apply. Check with the plan administrator for details pertaining to your individual situation.)
- 457 fund plan transfers: in-service or after termination
- IRAs: Non-Roth/non-after tax
- After-tax lump sum
If you retire, terminate, or defer your membership before completing your purchase of Plan E service credit, you have 120 days to complete payment using any of the methods referenced above.
How to Transfer Plans
- To initiate a transfer, contact us or log in to My LACERA and click on the Purchases tab or download and print the Prospective Transfer Election Form.
- Complete the Prospective Transfer Election Form and return it to LACERA. Once LACERA has received your prospective transfer form, it cannot be rescinded.
- LACERA will notify you by mail of your effective date of transfer.
Retiring Under a Prospective Transfer
If you have prospectively transferred from Plan E to D or from Plan D to E, you may combine service to meet the minimum requirements of each plan. The minimum requirement for Plan D is a combined service of five years, and the minimum requirement for Plan E is a combined service of 10 years.
- If you have earned a minimum of five years of combined service, you are eligible to retire under Plan D at a minimum age of 50 years.
- If you have earned a minimum of 10 years of combined service, you are eligible to retire under Plan E at a minimum age of 55 years.*
*The total amount of service credit you accrue under all LACERA plans counts toward your County retiree healthcare subsidy; certain eligibility rules apply.
When making retirement decisions, it is important to consider the following: If you retire under Plan D at less than age 55, your Plan E retirement benefits automatically become effective on the date of your 55th birthday. Meanwhile, you receive only the Plan D benefits until you reach age 55. Thereafter, your checks will reflect the total of your full monthly Plan E and Plan D benefits.