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How the Superior Court Voluntary Separation Incentive Program (VSIP) May Affect Your LACERA Benefits

Published on 7.12.2024 in Announcements
Infographic of white envelope opened with a blue letter coming out of it.

The information below is specific to your LACERA retirement benefits under the Superior Court’s VSIP program. For questions regarding the VSIP itself, email AskHR@lacourt.org. For questions regarding your Horizons or 401(k) accounts related to the VSIP, call Empower Retirement at 800-947-0845.

The Los Angeles Superior Court recently notified LACERA that it is offering a Voluntary Separation Incentive Program (VSIP) to Superior Court employees who meet the VSIP criteria and are approved for the program by the Superior Court. Please note that the VSIP is not offered by the County of Los Angeles or LACERA. The terms were determined by the Court, and the program neither requires nor prohibits eligible members from retiring.

If you are considering enrolling in the VSIP, it is important to understand how terminating service may impact your LACERA retirement benefits, including retiree healthcare benefits.

Options for Terminating Service

Any LACERA member who terminates service with their employer has four basic options for their LACERA benefits, described below with links to further information. You can:

  1. Service retire, if you meet the eligibility requirements, to receive lifetime benefits, including retiree healthcare. Separation (termination) from the Superior Courts as of October 1, 2024 would allow you to elect a retirement date as early as October 2, 2024.

    For more about service retirement, visit the Retirement Planning section on lacera.com.

    If you are considering returning to work with a LACERA employer after retiring, review the Return-To-Work page on lacera.com.

  2. Terminate employment and leave your contributions on deposit with LACERA (contributory plans only; not applicable to Plan E members). You will be considered a deferred member, and you will be eligible to service retire when you decide to or meet the minimum requirements. You do not need to take any action to enter a deferred status with LACERA; it is automatic upon termination from active employment.

    It’s important to know that it could negatively affect your beneficiaries if you pass away on a deferred status versus a service retirement. Please review the difference in death benefits to ensure you are making the best decision for your family members.

  3. Establish reciprocity with a reciprocal agency within six months of terminating service. Reciprocal systems protect employees’ earned retirement benefits when those employees transfer between participating agencies.

    Please see lacera.com for more information on establishing reciprocity.

  4. Withdraw your contributions, which would terminate your LACERA membership and forfeit all LACERA retirement benefits—including retiree healthcare, the right to apply for a disability retirement, and ability to establish reciprocity.

    Read Pre-Retirement Withdrawal of Contributions on the Terminating Service page of lacera.com for more details on the process of withdrawing from membership and the impact of waiving your LACERA benefits.

Additional items to consider:

  • Retiree Healthcare is a valuable and important part of planning for retirement. Visit the Retiree Healthcare section on lacera.com for program and plan details.
  • Regardless of your termination decision, active members with enough service credit to retire and retired members should consider having a LACERA Special Durable Power of Attorney on file with us. Visit the Special Durable Power of Attorney page for more information.

If you have questions about any of your options, we strongly recommend speaking to a LACERA Retirement Benefits Specialist before making a final decision about terminating service.

How to Connect with Us

We are always here to help. Here's how you can reach us:

  • Call us at 800-786-6464 between 7:00 a.m. and 5:30 p.m. (Pacific Time), Monday through Friday, except holidays.
  • Make a virtual or in-person appointment by visiting lacera.com and clicking on “Appointment Reservations.”
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  • Email us at welcome@lacera.com with general questions.

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