For Retirement! General And Safety Members

Los Angeles County Employees Retirement AssociationIt’s never too late tofor retirement!General and Safety Members Mid-Career Workshop

Mid-Career Workshop: OVERVIEWIncome SourcesRetirement EligibilityRetirement FactorsMaximizing Final CompensationPurchase Service CreditPayment MethodsPlan TransfersHealth Insurance SubsidyCost of Living Adjustment (COLA)DivorceLeaving County ServiceDisability & Long Term Disability (LTD)Death BenefitsDurable Power of AttorneyMy LACERA at www.lacera.com2Los Angeles County Employees Retirement Association

Income SourceHow Will Your Retirement Picture Look?How much income do I need?Is 70%-80% of working income ACERA Pension3Los Angeles County Employees Retirement Association

Retirement EligibilityGeneral Plans B, C and D Age 50 with 10 or more years of serviceAny age with 30 years of serviceAge 70 regardless of serviceVesting: 5 years of serviceThis is your time to4what you’ve earned.Los Angeles County Employees Retirement Association

Retirement EligibilityGeneral Plan E Age 55 with 10 or more years of serviceAge 70 regardless of serviceVesting: 10 years of serviceGeneral Plan G 5Age 52 with 5 or more years of serviceAge 70 regardless of serviceVesting: 5 years of serviceLos Angeles County Employees Retirement Association

Retirement EligibilitySafety Plan B Age 50 with 10 or more years of serviceAny age with 20 years of serviceVesting: 5 years of serviceSafety Plan C 6Age 50 with 5 or more years of serviceAge 70 regardless of serviceVesting: 5 years of serviceLos Angeles County Employees Retirement Association

Retirement FactorsAge Safety Plan B caps at age 55Safety Plan C caps at age 57General Plans B, C, D and E caps at age 65Plan G caps at age 67Years and months of Service Credit 7Service credit and age determine your percentagePercentage x Final Compensation Monthly Allowance Los Angeles County Employees Retirement Association

Retirement FactorsFinal Compensation8 1 year– Safety Plan B– General Plans B, C, and D Any 3 years– Plan E 36 consecutive-months (2020 annual limit: 151,549)– Safety Plan C– General Plan GLos Angeles County Employees Retirement Association

Maximizing Final CompGeneral Plans B, C, D, and E Sick buyback (non-MegaFlex)– 3 days each six months ( January – June & July – December)Excess vacation (non-MegaFlex)– 20 days or 160 hour limitExcess non-elective leave (MegaFlex)– 10 days or 80 hour limitLive life to the9Los Angeles County Employees Retirement Association

Maximizing Final CompSafety Plan B – Sheriff/DA (non-MegaFlex)10 Sick buyback– 5 days (40 hours) June 30– 3 days (24 hours) December 31 Excess vacation– 20 days or 160 hour limitLos Angeles County Employees Retirement Association

Maximizing Final CompSafety Plan B – Firefighter (non-MegaFlex) 1½ Shifts (36 hours) Sick Buyback each 6 months6 Shifts (144 hours) Holiday Buyback10 Shifts (240 hours) Excess Vacation*Safety Plan C and General Plan G – No Buybacks11Los Angeles County Employees Retirement Association

Purchase Service CreditAll Plans B, C, D or G ( Plan E not eligible) 12Purchasing service increases retirementCounts toward insurance and retirement eligibilityCounty Service– Temporary Time– Sick Without Pay (SWOP)– Redeposit of withdrawn contributionsOther Public Agency (OPA)– Military/Federal– Other Public Agency ( California Only)Los Angeles County Employees Retirement Association

Purchase Service CreditPurchases Increase Retirement Benefits13Los Angeles County Employees Retirement Association

Payment MethodsLump Sum From any source, except ROTH IRARollovers ( May use deferred compensation 457 Horizons or 401k)Monthly Payroll DeductionCombination 14Partial lump sum and payroll deductionLos Angeles County Employees Retirement Association

Payment MethodsAfter-tax contract No tax benefit on payroll deductionsRevisable – may not be mixed with any before-tax dollarsBefore-tax contract 15Tax-deffered payroll deductionsIrrevocableLos Angeles County Employees Retirement Association

Plan TransfersOpen Window Plan Transfer (E to D)Prospect Plan Transfer 16D to E orE to DIncremental PurchaseLos Angeles County Employees Retirement Association

HealthcareStayhappy and wise.17Los Angeles County Employees Retirement Association

Health Insurance SubsidyCounty Subsidy – Retiree Health Care: 18First 10 Years of Service Credit 40%Each Additional Year Additional 4%25 Years of Service Credit 100%County subsidy based on Benchmark Plan–Anthem Blue Cross IndemnityCounty subsidy may be subject to changeLos Angeles County Employees Retirement Association

Health Insurance SubsidyMembership or Reciprocity Prior to 8/1/14 – Tier I County will subsidize retiree and eligible dependentsMembership 8/1/14 and later – Tier II 19County will subsidize Retiree-Only rateMember can insure eligible dependents, but pays the differenceLos Angeles County Employees Retirement Association

Health Insurance SubsidyCOLA based on CPI for LA, Orange, and Riverside countiesPlan B, C, D and G Maximum 2% annual adjustmentPlan E 20Maximum 2% based on service earned after June 4, 2002 ( COLA % is prorated)Plan E members may purchase Elective COLALos Angeles County Employees Retirement Association

Beware of the 4 D’sDivorceDepartureDisabilityDeath Before Retirementthe possibilities.21Los Angeles County Employees Retirement Association

DivorceJoinder—Hold placed until retirementCourt Order (DRO, QDRO) requiredBrown FormulaOptions 4Re-Marriage—Carnall Rights (claim on surviving spouse’s allowance)22Los Angeles County Employees Retirement Association

Departure4 Choices 23Defer your retirementEnter reciprocal agencyWithdraw contributionsRetireLos Angeles County Employees Retirement Association

Defer Your RetirementDefer Contributions Accrue interest up to the assumed rate of returnAge 72 mandatory distributionRetire when you become eligiblePlan E must have 10 years minimumEstablish reciprocity—helps to meet minimum eligibility requirementsRemember to keep your address up to date with LACERAMy LACERA at www.lacera.com24Los Angeles County Employees Retirement Association

Enter Reciprocal AgencyRequirements: 25Join within 6 months of leaving prior systemNo overlap in serviceMust retire from all agencies on the same dayMust apply with each agency separatelyMay not withdraw while employed at either agencyLos Angeles County Employees Retirement Association

Enter Reciprocal AgencyBenefits: 26Helps meet minimum retirement eligibility requirementsHighest final compensation either agencySeparate retirement checksMust apply with each agency separatelyLACERA health insurance based on LACERA service only ( LA City exception)Los Angeles County Employees Retirement Association

Withdraw Your ContributionsPlan A, B, C, D and GWaive your right to future benefits2 Methods27 Direct rollover into Tax-Qualified Plan ( preserves your savings for retirement)– EXCEPTION: After-tax contributions cannot be rolled over Paid directly to you:– 20% mandatory Federal tax withheld– Possible Tax penalty under age 59 1/2Los Angeles County Employees Retirement Association

RetirementReceive a guaranteed life-time pension!Receive subsidized medical, dental and vision insurance( with 10 years service)Time to28Los Angeles County Employees Retirement Association

Disability RetirementContributory plans onlyPermanent incapacity due to injury or illness Service-Connected Disability Non-Service Connected DisabilityApply with LACERA’s Disability DivisionProcess may take 12 months or moreBoard of Retirement approvesRules differ for PPT transfers to Plan D29Los Angeles County Employees Retirement Association

Long Term Disability (LTD)LTD administered by the County not LACERAContributory Plans After 2 years on LTD, you must apply for LACERA Service or Disability retirementNo retirement service credit earnedLTD is offset by LACERA retirementSpeak to LTD to find out about their eligibility requirements.30Los Angeles County Employees Retirement Association

Long Term Disability (LTD)Plan E LTD provided in lieu of LACERA disabilityEarn retirement service credit while on LTD ( even after termination)LTD payments stop upon retirementEarn service credit while on any disability plan sponsored by the employerSafe and31Los Angeles County Employees Retirement Association

Pre-Retirement Death BenefitsNonservice-Connected Death Benefits from Injury or diseaseNOT CAUSED by employmentService-Connected Death Benefits from injury or diseaseCAUSED by employment32Los Angeles County Employees Retirement Association

Nonservice-Connected DeathLess than 5 years – Lump-sum Basic Death Benefit Contributions and interest1 Month salary each year of service credit – up to 6 months5 years or more – Choice of a Payment option 33Lump-sum Basic Death BenefitMonthly allowance ( Eligible spouse, DP, or minor children only)Combined benefit ( Eligible spouse, DP, or minor children only)Los Angeles County Employees Retirement Association

Service-Connected DeathNo minimum service requirementChoice of a Payment option: Lump-sum Basic Death BenefitMonthly allowance ( Eligible spouse, DP, or minor children only)Combined benefit ( Eligible spouse, DP, or minor children only)of mind34Los Angeles County Employees Retirement Association

Service-Connected DeathDeath during the performance of dutyViolent Death Benefit for spouse of a Safety member35 Added percentage to monthly survivor benefit– 1 child – 25%– 2 children – 40%– 3 or more children – 50% Special Death Benefit – 12 months salaryLos Angeles County Employees Retirement Association

Plan E DeathPre-retirement death benefits do not apply to Plan ELong-Term Disability (LTD) 36Provides death benefitsSurvivor Income Benefit (SIB) for MegaFlex participant – must enroll!Los Angeles County Employees Retirement Association

Durable Power of AttorneyAllows trusted individual to act in your placeDPOA 37Allows another to do whatever you electNo need to obtain court ordered conservatorshipDPOA stops upon your incapacity“Durable” POA continues upon your incapacityMust give authority over– Retirement Benefits, or– Retirement Accounts, or– Retirement pension benefitsStops upon deathLos Angeles County Employees Retirement Association

Visit LACERA OnlineBrochure and FormsMy LACERA on www.LACERA.com My LACERA – Access to your personalretirement information online, 24/7 Retirement CalculatorUpload DocumentsSecure Message Center 38Los Angeles County Employees Retirement Association

How Do I Contact LACERA?By phone: 1-800-786-6464In person: 300 N. Lake Avenue, Pasadena, CA Appointments receive priority over walk-ins TEMPORARILY SUSPENDED DUE TO COVID-19By email: welcome@lacera.comOnline: www.lacera.comMY LACERA: Secure Message Center39Los Angeles County Employees Retirement Association

Plan andfor a happy retirement.40Los Angeles County Employees Retirement Association

Los Angeles County Employees Retirement Association. It’s never too late to. General and Safety Members. Mid-Career Workshop. for retirement! Mid-Career Workshop: OVERVIEW. Income Sources Retirement Eligibility Retirement Factors. . PowerPoint Presentation Author: Carlos Barrios