Retirement Plan booklet - sdcera
Retirement Plan booklet - sdcera
Retirement Plan booklet - sdcera
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Retirement</strong> <strong>Plan</strong><br />
Overview of SDCERA benefits and services<br />
for active and deferred, Tier A members<br />
San Diego County Employees <strong>Retirement</strong> Association . 2008
SAN DIEGO COUNTY EMPLOYEES<br />
RETIREMENT ASSOCIATION<br />
Strength. Service. Commitment.<br />
RETIREMENT PLAN—TIER A BOOKLET<br />
Updated information<br />
Page 3<br />
SIDEBAR<br />
General members hired on or after March 8, 2002, and before August 28, 2009, are Tier A. If you were hired before<br />
March 8, 2002 (and were active at the time), you became a Tier A member on March 8, 2002 (unless you opted out<br />
during a one-time opt-out period that ended March 7, 2002).<br />
If you terminated prior to March 8, 2002, and are a General, Tier I or Safety member, your retirement benefits may be<br />
different from the benefits outlined in this <strong>booklet</strong>. Contact SDCERA for information.<br />
Page 6<br />
YOUR CONTRIBUTION ACCOUNT<br />
Your member contribution account continues to accrue interest twice each year in June and December. The interest<br />
applied will either be the fund’s actual investment earnings for that six-month period, or half the assumed annual rate<br />
of return, whichever is lower. The current assumed rate of return is 7.75% annually (3.875% semiannually). If there are<br />
investment losses for the six-month period, members’ accounts will be credited with 0% interest.<br />
Page 9<br />
BECOMING ELIGIBLE TO COLLECT A RETIREMENT BENEFIT<br />
You are eligible to retire if you meet the following eligibility requirements:<br />
• All active members at least age 50 with 10 or more years of service credit<br />
• General members at any age with 30 or more years of service credit<br />
• Safety members at any age with 20 or more years of service credit<br />
• All active members at age 70 with any amount of service credit (including members with less than five years of<br />
SDCERA service credit)<br />
Page 24<br />
AGE<br />
PERCENT<br />
AGE<br />
PERCENT<br />
CONSIDERING THE TEMPORARY<br />
SUPPLEMENT TO BENEFIT OPTIONS<br />
The temporary supplement factors, right,<br />
became effective July 1, 2011.<br />
50 31.41 %<br />
51 34.41<br />
52 37.71<br />
53 41.37<br />
54 45.43<br />
55 49.93<br />
56 54.94<br />
57 60.51<br />
58 66.72<br />
59 73.67<br />
60 81.45<br />
61 90.18<br />
2275 Rio Bonito Way, Suite 200, San Diego, CA 92108–1685 • www.<strong>sdcera</strong>.org • PHONE 619.515.6800 • TOLL FREE 888.473.2372
Page 25<br />
MAXIMUM BENEFITS PAYABLE TO YOU<br />
SDCERA will not pay a retirement benefit amount that is greater than 100% of your monthly final average compensation<br />
(see Page 16).<br />
Additionally, federal law limits the amount of compensation that may be used to calculate your benefits. The limit for 2014<br />
is $260,000. The limit may be revised in accordance with the Internal Revenue Code (IRC) regulations. If you first became<br />
a member of SDCERA before July 1, 1996, you are not affected by this IRC Section 401(a)(17) limit.<br />
The IRC regulations also place a limit on the amount of pension benefits you can receive. Under IRC Section 415(b), you<br />
generally may not receive more than $210,000 annually (effective January 1, 2014) and the amount is adjusted based<br />
on your retirement age. (Refer to www.<strong>sdcera</strong>.org for current amounts.) Some Safety members employed by the Sheriff’s<br />
Department are not impacted by the adjusted limits of IRC Section 415(b). The County of San Diego has implemented an<br />
Excess Benefit <strong>Plan</strong>, which is currently designed to pay the additional amount if you accrue a benefit that is more than<br />
the annual limit. The Excess Benefit <strong>Plan</strong> is not part of the tax-qualified SDCERA retirement plan and is subject to different<br />
tax rules.<br />
SDCERA will notify you at the time of your retirement if your benefit is affected by either of these IRC limits, or you may<br />
contact SDCERA for more information.<br />
Page 30<br />
SUPPLEMENTAL BENEFIT ALLOWANCE<br />
The Supplemental Benefit Allowance (SBA)<br />
amounts became effective July 1, 2013.<br />
YEARS OF SDCERA MONTHLY<br />
SERVICE CREDIT SBA<br />
Less than 10 0<br />
10 $87.50<br />
11 $96.25<br />
12 $105.00<br />
13 $113.75<br />
14 $122.50<br />
15 $131.25<br />
16 $140.00<br />
17 $148.75<br />
18 $157.50<br />
19 $166.25<br />
20 or more $175.00<br />
Rev. 1/2014
About this guide<br />
In support of our mission to provide superior service to our<br />
members, SDCERA is committed to educating you about<br />
your retirement benefits so that you have the resources you<br />
need to make informed decisions. You will receive regular<br />
communication from SDCERA in newsletters, publications<br />
and correspondence. We will continue this effort throughout<br />
your membership—while you are working, as well as after<br />
you have retired. Your responsibility is to read the information<br />
and ask questions when you don’t understand something or<br />
need clarification.<br />
This guide will help you understand many of the basics<br />
about your SDCERA benefits. It can be used in combination<br />
with other SDCERA resources that provide greater detail.<br />
SDCERA’s mission<br />
is to prudently<br />
manage the fund,<br />
efficiently administer<br />
benefits and provide<br />
superior service to<br />
SDCERA members.
Numerous publications are available<br />
to give information concerning specific<br />
topics as follows:<br />
Booklets<br />
Disability <strong>Retirement</strong><br />
Dividing Community Property<br />
Health Insurance <strong>Plan</strong>s for<br />
Retired Members<br />
Now that You are Retired<br />
<strong>Retirement</strong> <strong>Plan</strong><br />
Survivor and Beneficiary Information<br />
Fact sheets<br />
Considerations after Termination<br />
Considerations before Purchasing<br />
Service Credit<br />
Deferred Membership<br />
Disability <strong>Retirement</strong><br />
Earning Service Credit<br />
Health Insurance Allowance<br />
Health Insurance <strong>Plan</strong>s<br />
Medicare Information for SDCERA<br />
Health <strong>Plan</strong>s<br />
Purchasing Service Credit<br />
Reciprocity<br />
Refunds<br />
<strong>Retirement</strong> Benefit Options<br />
<strong>Retirement</strong> <strong>Plan</strong> Summary<br />
Rollover/Transfer for Purchasing<br />
Service Credit<br />
Supplemental Benefit Allowance<br />
Be informed<br />
In addition to the various publications, our educational programs<br />
are a valuable resource. Attend an Outreach meeting in your<br />
department, or a workshop at SDCERA. The programs are<br />
designed around numerous topics—from learning the basics<br />
after you are hired, to what to expect as you near retirement.<br />
Use the SDCERA Call Center when you need a quick, reliable<br />
answer. Representatives are available Monday through Friday,<br />
from 8 a.m. to 5 p.m. locally at 619.515.6800 or toll free at<br />
1.888.473.2372.<br />
SDCERA’s web site is comprehensive and interactive. A retirement<br />
benefit calculator is a popular tool and the news section<br />
will keep you up to date. Various publications are also available<br />
to either order or download. Visit www.<strong>sdcera</strong>.org.<br />
An annual benefits statement is mailed to you each year and<br />
includes personalized information and estimated retirement<br />
benefit amounts based on various ages. It is your responsibility<br />
to review the statement regularly and contact SDCERA when you<br />
have questions or need assistance.<br />
If you have a question or dispute about your personalized<br />
account information or your SDCERA retirement benefit, please<br />
submit your written inquiry to:<br />
SDCERA Member Services<br />
2275 Rio Bonito Way<br />
Suite 200<br />
San Diego, CA 92108-1685
Inside<br />
3 Entering SDCERA membership<br />
5 Funding your retirement benefit<br />
7 Reciprocity<br />
9 Becoming eligible to collect a<br />
retirement benefit<br />
11 Leaving before retirement<br />
15 Calculating your retirement benefit<br />
21 Selecting a retirement benefit option<br />
23 Considering the Temporary Supplement<br />
to benefit options<br />
25 Receiving your retirement benefit<br />
29 Survivor benefits from SDCERA<br />
30 Supplemental benefit allowance<br />
SDCERA Call Center<br />
Representatives available:<br />
Monday through Friday<br />
8 a.m. to 5 p.m.<br />
619.515.6800<br />
1.888.473.2372<br />
www.<strong>sdcera</strong>.org<br />
31 Disability retirement<br />
33 General Tier A member percentages<br />
34 Safety member percentages<br />
SDCERA Member Services<br />
2275 Rio Bonito Way<br />
Suite 200<br />
San Diego, CA 92108-1685<br />
35 Index
Welcome to SDCERA membership. As a member, you have<br />
access to many resources that will help you understand the<br />
SDCERA retirement benefits available to you.
Basic information about<br />
your SDCERA membership
3<br />
Entering SDCERA membership<br />
You are eligible for SDCERA membership if you are working in a permanent<br />
position at least 20 hours each week. You become a member of SDCERA in the month<br />
following your hire date (or your appointment to a permanent position). SDCERA<br />
keeps track of this date—your SDCERA membership entry date.<br />
General members hired on<br />
or after March 8, 2002 are<br />
Tier A. If you were hired<br />
before March 8, 2002 (and<br />
were active at the time), you<br />
became a Tier A member on<br />
March 8, 2002 (unless you<br />
opted out during a one-time<br />
opt-out period that ended<br />
March 7, 2002).<br />
If you terminated prior to<br />
March 8, 2002, and are a<br />
General, Tier I or Safety<br />
member, your retirement<br />
benefits may be different<br />
than the benefits outlined<br />
in this <strong>booklet</strong>. Contact<br />
SDCERA for information.<br />
When you are eligible for membership, your participation is mandatory.<br />
SDCERA has two membership groups—General and Safety. You are either<br />
a General member, or a Safety member (in a recognized law enforcement<br />
position) based on your job classification. Safety member job classifications<br />
include Deputy Sheriffs, Deputy Probation Officers and District Attorney<br />
Investigators. All other job classifications are General members. General<br />
members are either Tier A or Tier I. Safety members do not have tiers.<br />
You are NOT eligible for membership if you are working in a part<br />
time position less than 20 hours per week; a temporary, provisional or<br />
emergency position; a student or seasonal position.
4<br />
Governance<br />
Your membership group, tier and entry age determine the amount you<br />
contribute to SDCERA to help fund your retirement benefit. Visit the<br />
calculators page at www.<strong>sdcera</strong>.org to view all member contribution<br />
rates and use the online calculator to see the percentage and dollar<br />
amount of your contribution.<br />
If you enter SDCERA membership from another public employer, you<br />
may be eligible for reciprocity. Read more on page 7.<br />
The County Employees <strong>Retirement</strong><br />
Law of 1937 is the law that<br />
governs SDCERA and is part of<br />
the California Government Code.<br />
The <strong>Retirement</strong> Law is often<br />
referred to as the 1937 Act and it<br />
applies to 20 counties in California,<br />
including San Diego County.<br />
Members can visit www.<strong>sdcera</strong>.org<br />
to see a copy of the law.<br />
The SDCERA fund was established<br />
on July 1, 1939—two years after<br />
the law was created. Since then,<br />
SDCERA has been managing the<br />
pension benefits that the County<br />
of San Diego* has put in place for<br />
its employees.<br />
Board of <strong>Retirement</strong><br />
SDCERA is governed by a<br />
nine-member Board of <strong>Retirement</strong>.<br />
The Board has the responsibility<br />
of being the fiduciaries for the<br />
SDCERA fund.<br />
* Any reference to County of<br />
San Diego or County in this<br />
<strong>booklet</strong> also includes other<br />
participating employers.
5<br />
Funding<br />
your retirement benefit<br />
Contributions and investment earnings fund pension benefits. Members<br />
and the employer make contributions to SDCERA to pay for the cost of<br />
providing your retirement benefits.<br />
Cost sharing<br />
A member with 30 or more<br />
years of service credit is no<br />
longer required to make<br />
member contributions.<br />
Members contribute based on membership group (General or Safety)<br />
and the age they become an SDCERA member. Your employer also<br />
contributes a percentage of annual payroll toward your retirement<br />
benefit. Each year, SDCERA’s actuary makes recommendations to the<br />
Board of <strong>Retirement</strong>, who then sets the contribution rates for members and<br />
the employer. The rates can increase, decrease or stay the same.<br />
In addition to the annual employer contribution, your employer may<br />
also pay a portion of your member contribution. This employer-paid<br />
offset reduces the amount you are required to pay. The offset is based on<br />
the representation unit that matches your job classification and also on<br />
how many years of continuous service you have with your employer. An<br />
offset chart and contribution calculator are available at www.<strong>sdcera</strong>.org.
6<br />
Your contribution account<br />
20-25%<br />
of the money in the fund<br />
comes from member and<br />
employer contributions<br />
The contributions you make are held in your individual member account<br />
and accrue interest semi-annually. The interest rate credited to your<br />
member account is the same interest rate applicable to the SDCERA<br />
fund, currently 8.25% annually.<br />
When you were hired, you completed a Member Sworn Statement,<br />
which designates a beneficiary for your SDCERA member contribution<br />
account. It is important to keep the beneficiary information up to date<br />
because if you die while you’re working, eligible benefits will be paid<br />
as you have designated. You must use the SDCERA Beneficiary Designation<br />
form to make changes or updates as needed. The form is available at<br />
www.<strong>sdcera</strong>.org or from SDCERA.<br />
Your contributions are pre-tax and deducted<br />
automatically from your bi-weekly pay check.<br />
75-80%<br />
is directly related to<br />
investment earnings
7<br />
Reciprocity<br />
Reciprocity links retirement benefits together when you move from one public<br />
agency to another. Reciprocity exists between SDCERA and many public agencies<br />
in California including CalPERS (California Public Employees <strong>Retirement</strong> System)<br />
and CalSTRS (California State Teachers <strong>Retirement</strong> System) to name two of the<br />
most common.<br />
There are legal requirements you<br />
must meet in order to be eligible<br />
for reciprocity:<br />
• You must leave active membership<br />
in one system and enter<br />
active membership in the next<br />
system within six months<br />
• You cannot take a refund from<br />
any reciprocal system<br />
• You must request and establish<br />
reciprocity from the retirement<br />
system you’re leaving<br />
Members may establish incoming or outgoing reciprocity. In fact, some<br />
members have both incoming and outgoing reciprocity because they<br />
continue to move from one public employer to another and each time they<br />
move, they link retirement benefits together. As a reciprocal member, there<br />
are several benefits available to you.<br />
A key benefit of reciprocity is that when your retirement benefit is calculated,<br />
all retirement systems use your highest final compensation to<br />
determine your benefit amount, regardless of which system you were<br />
working in when you earned the highest wage. This usually means that you<br />
are able to maximize the retirement benefit from your first system(s) that<br />
would otherwise be based on an earlier salary (one that’s probably less).<br />
Read more on page 16.<br />
• You must retire from both<br />
retirement systems on the<br />
same date<br />
There are other requirements<br />
and more benefits available<br />
to reciprocal members.<br />
Read the Reciprocity fact sheet<br />
for details.
8<br />
Reciprocal agencies<br />
CalPERS<br />
CalSTRS<br />
For example, imagine that you work for the City of San Diego for<br />
four years, then quit your job (but don’t retire) and then you begin<br />
work for the County of San Diego. If you work for the County for<br />
16 years and then decide to retire, you will have a retirement<br />
based on 20 years of employment, and a portion will be paid<br />
from each agency.<br />
Your service credit does not combine to total 20 years. However,<br />
each agency would pay you based on the service credit you had<br />
with their system. You would receive a retirement payment from<br />
the City’s retirement system based on the four years of service<br />
you had with that system and a second payment from SDCERA<br />
based on the 16 years of service you had with the County. Both<br />
benefits would be based on your highest final compensation,<br />
which would likely be from your most recent employment.<br />
Disability retirement and reciprocity<br />
If you establish reciprocity between SDCERA and another public agency,<br />
disability retirement filing requirements and benefit calculations may<br />
be different for you. Contact SDCERA for information if this situation<br />
affects you.<br />
Judges’ <strong>Retirement</strong> System (JRS)<br />
JRS II<br />
California counties that maintain<br />
retirement systems under the<br />
County Employees <strong>Retirement</strong><br />
Law of 1937:<br />
Alameda Sacramento<br />
Contra Costa San Bernardino<br />
Fresno San Diego<br />
Imperial San Joaquin<br />
Kern<br />
San Mateo<br />
Los Angeles Santa Barbara<br />
Marin Sonoma<br />
Mendocino Stanislaus<br />
Merced Tulare<br />
Orange Ventura<br />
A partial list of independent<br />
public agency retirement systems<br />
in California includes the City<br />
of San Diego, the City and<br />
County of San Francisco and the<br />
Los Angeles City Employees’<br />
<strong>Retirement</strong> System. Review the<br />
Reciprocity fact sheet available at<br />
www.<strong>sdcera</strong>.org for a detailed list<br />
of more reciprocal agencies.
9<br />
Becoming eligible to<br />
collect a retirement benefit<br />
When you are vested, you have earned the nonforfeitable right to receive<br />
an SDCERA retirement benefit. You are vested when you have at least five<br />
years of SDCERA service credit, or a combination of at least five years of<br />
service credit from SDCERA and one or more reciprocal systems. Read<br />
page 15 for information about earning service credit.<br />
There is a difference between being vested and being eligible to retire. You<br />
are eligible to retire if you meet the following eligibility requirements:<br />
The retirement benefit you<br />
receive is guaranteed—by<br />
law—and the benefit you earn<br />
will be paid for your lifetime.<br />
• All active members at least age 50 with 10 or more years of<br />
service credit<br />
• General members at any age with 30 or more years of service credit<br />
• Safety members at any age with 20 or more years of service credit<br />
• All members at age 70 with any amount of service credit (including<br />
members with less than five years of SDCERA service credit)
10<br />
If you are vested and you quit your job before you’ve reached 10 years<br />
of service credit, you may apply for a retirement benefit in the future.<br />
In this case, you must be at least age 50 and can retire on or after the<br />
date that you would have reached 10 years of service credit had you<br />
remained working.<br />
For example, imagine you are hired at age 51 and work six years,<br />
then terminate at age 57. At age 57, you meet the minimum age<br />
requirement to apply for a service retirement (usually age 50) but<br />
you must wait four years in deferred membership status until you<br />
are eligible to retire, which means your earliest eligibility date<br />
to retire will be 10 years after the age you were when you were<br />
hired. In this case your service retirement will be based on six<br />
years of service credit and will begin at age 61.<br />
In this example, if you decided to return to work one year later (at<br />
age 58), you would keep your first eligibility date to retire (when<br />
you are age 61) even though you would only have nine years<br />
of service credit at age 61. This is because you have returned to<br />
work from a deferred status and your eligibility date is based on<br />
rules for this membership class—deferred return. In this case your<br />
service retirement benefit will be based on nine years of service<br />
credit and begin at age 61.<br />
When you are eligible to retire,<br />
your benefit will not begin<br />
automatically. You must apply<br />
for a service retirement benefit<br />
by contacting SDCERA and<br />
requesting a retirement packet.<br />
A copy of your birth certificate<br />
or passport will be required to<br />
process your retirement. If you<br />
are married or registered as a<br />
domestic partner, you must<br />
also submit copies of your<br />
spouse’s/partner’s birth certificate<br />
and your marriage license or<br />
domestic partnership registration.
11<br />
Leaving before retirement<br />
If you terminate before you’re ready to retire (either because you are not<br />
eligible or because you choose to wait) you must make a decision about<br />
your member contribution account.<br />
Deferred membership<br />
When you terminate your<br />
employment prior to retirement,<br />
if you choose to leave your<br />
member contribution account<br />
on deposit in SDCERA, you<br />
must keep SDCERA informed<br />
of your address so that you<br />
will continue to receive regular<br />
correspondence and important<br />
news. A change of address form<br />
is available from SDCERA.<br />
If you are vested (you have five or more years of service credit) when<br />
you leave your job and you leave your account on deposit in SDCERA, it<br />
will continue accruing semi-annual interest. When you are eligible and<br />
make the choice to retire in the future, you may apply for retirement and<br />
begin to collect a benefit payment.<br />
During the period of time following your termination date and before<br />
your retirement date you will be a deferred member—no longer<br />
contributing to the fund and not yet collecting a retirement benefit.<br />
Only vested members can be deferred members. Read more in the<br />
Deferred Membership fact sheet.<br />
Inactive-nonvested membership<br />
If you are not vested when you leave your job, you have not earned<br />
a service retirement benefit and you are not a deferred member.<br />
However, you may choose to leave your account on deposit in<br />
SDCERA, it will continue accruing semi-annual interest and you may<br />
take a refund of your account at any time in the future. Read more in the<br />
Considerations after Termination fact sheet.<br />
Refunds<br />
When you leave your job prior to retirement, you have the option of<br />
requesting a refund of your contribution account; however, if you are<br />
vested, you should consider this option carefully because you will be<br />
eligible to receive a lifetime benefit in the future, which may be more<br />
valuable than your refund. If you receive a refund, you forfeit your right<br />
to any future SDCERA benefits.
12<br />
Reciprocity<br />
You are eligible to establish reciprocity if you leave your account on<br />
deposit in SDCERA and become a member in a reciprocal retirement<br />
system within six months of leaving active SDCERA membership.<br />
Any future service credit earned in reciprocal retirement systems<br />
will count toward meeting SDCERA retirement eligibility requirements<br />
as long as you retire concurrently in all reciprocal systems. Read more<br />
on page 7.<br />
Re-employment<br />
If you terminate and later return to work for a subsequent period of<br />
employment, as long as you did not receive a refund of your member<br />
contribution account after your termination, you are still an SDCERA<br />
member and will return to active status when you become re-employed<br />
(to a permanent position, see page 3). You resume earning service credit<br />
toward your retirement benefit and make contributions that will be<br />
credited to your member contribution account.<br />
Remember to review SDCERA<br />
member resources for a more<br />
detailed explanation of your<br />
member benefits. Fact sheets<br />
can be viewed or ordered from<br />
www.<strong>sdcera</strong>.org and are available<br />
on many topics including:<br />
Considerations after Termination<br />
Deferred Membership<br />
Refunds<br />
Reciprocity<br />
If you have returned to active membership and received a refund when<br />
you previously terminated, you may redeposit the withdrawn contributions<br />
plus interest, which will restore the previous period of service<br />
credit. Read more in the Purchasing Service Credit fact sheet.
Use SDCERA member resources to help you understand<br />
the calculation of your retirement benefit. The online<br />
calculator is a popular tool and is easy to use, visit<br />
www.<strong>sdcera</strong>.org to start planning today.
Calculating your<br />
retirement benefit
15<br />
Calculating<br />
your retirement benefit<br />
SDCERA is a defined benefit pension plan. Your retirement benefit<br />
will be based on a formula that will pay a guaranteed, monthly, lifetime<br />
benefit. The formula considers your age at retirement, how long<br />
you’ve worked (your service) and your highest final average monthly<br />
compensation based on a one-year period.<br />
Age<br />
50<br />
55<br />
60<br />
2.0%<br />
3.0%<br />
2.5%<br />
3.0%<br />
3.0%<br />
3.0%<br />
Age factor<br />
While you are working, your retirement benefit generally increases as you<br />
age. At the time of your retirement you will receive a percentage of your<br />
final average monthly compensation based on your retirement age and<br />
your service credit.<br />
The age factor increases quarterly from age 50 to age 60 for General,<br />
Tier A members and from age 41 to age 50 for Safety members.<br />
General, Tier A<br />
Safety<br />
See pages 33 and 34 for more<br />
percentage examples based on<br />
various ages.<br />
You begin earning service credit<br />
when you enter SDCERA<br />
membership, usually in the<br />
month after you are hired in<br />
a permanent position. In most<br />
cases, if you’re working full<br />
time, you receive one year of<br />
retirement service credit for<br />
every year of service (work)<br />
you complete.<br />
Service Credit<br />
Your service credit is the measure of time you have participated in<br />
the retirement plan. Service credit considered for retirement is not the<br />
same amount of time you work for your employer. Service credit is<br />
earned by the hour (80 hours per pay period; 2,080 per year). You<br />
cannot earn more than 80 hours of service credit during a pay period.<br />
If your regular schedule requires you to work more than 80 hours, the<br />
additional hours over 80 will not increase your service credit.<br />
If you are off without pay for any reason (e.g., sick leave, family medical<br />
leave or miscellaneous leave without pay, etc.) you do not earn service<br />
credit during that time. Voluntary time off is an exception.<br />
You may be eligible to purchase service credit you have missed due to<br />
sick leave without pay, or for work in a position that was ineligible<br />
for SDCERA membership before you became a member. You may also
16<br />
be eligible if you have ever taken an SDCERA refund following a<br />
previous period of employment, or if you worked for another public<br />
agency in California prior to your SDCERA membership. Read more in<br />
the Purchasing Service Credit fact sheet.<br />
Final compensation<br />
Final compensation is best thought of simply: It’s approximately what you<br />
earn in a one-year period while you are working. SDCERA calculates<br />
final average monthly compensation based on your highest one year<br />
(26 consecutive pay periods) of eligible earnings. The timeframe does not<br />
need to be within a fiscal year or a calendar year; rather, SDCERA uses<br />
your highest 26 consecutive pay periods.<br />
For most members, the last 26 consecutive pay periods are used because<br />
usually you earn at your highest pay rate at the time of your termination.<br />
However, if there is a time period in your employment history as an<br />
active SDCERA member when you were earning at a higher rate than<br />
the rate you earn at the time of your termination, SDCERA will use the<br />
26 consecutive pay periods that provide the highest amount.<br />
Gross, biweekly pay plus<br />
other select earnings categories<br />
are included in your final<br />
compensation calculation.<br />
Uniform allowance, bilingual,<br />
shift premium and Quality<br />
First payments are some common<br />
examples of eligible earnings<br />
categories. Overtime is not an<br />
eligible pay category and is not<br />
included. Visit the calculators page<br />
at www.<strong>sdcera</strong>.org to see the list<br />
of eligible categories.<br />
You receive a percentage of your final compensation as a retirement<br />
benefit. The percentage you receive is based on your age at retirement,<br />
total service credit and membership group (General or Safety).<br />
If you have established reciprocity (see page 7) your retirement benefit<br />
from all reciprocal systems will be based on your highest final average<br />
monthly compensation, regardless of which system you are working in<br />
when you earn the highest wage.
17<br />
Calculating<br />
your retirement benefit (continued)<br />
Final compensation calculation examples<br />
Keep in mind that your<br />
SDCERA benefit will begin<br />
when you retire from the<br />
County of San Diego and<br />
your Social Security benefit<br />
(if eligible) may not be available<br />
until a later date. For<br />
example, you may be eligible<br />
and choose to collect your<br />
SDCERA retirement benefit<br />
at an earlier age than you<br />
will be eligible to collect a<br />
Social Security benefit.<br />
example 1<br />
26 consecutive pay periods of a member’s gross biweekly pay = $36,000<br />
Bilingual pay in 26 pay periods = $1,040<br />
Quality First payments in six pay periods = $1,140<br />
Total compensation eligible for retirement = $38,180<br />
Final average monthly compensation ($38,180÷12) = $3,182<br />
example 2<br />
26 consecutive pay periods of a member’s gross biweekly pay = $55,000<br />
Uniform allowance in 26 pay periods = $725<br />
Total compensation eligible for retirement = $55,725<br />
Final average monthly compensation ($55,725÷12) = $4,644<br />
example 3<br />
26 consecutive pay periods of a member’s gross biweekly pay = $60,000<br />
Quality First payments in six pay periods = $2,400<br />
Total compensation eligible for retirement = $62,400<br />
Final average monthly compensation ($62,400 ÷12) = $5,200<br />
Social Security integration with your SDCERA benefit<br />
General members (and their employer) contribute to both SDCERA and to<br />
Social Security because the SDCERA retirement benefit is integrated with<br />
Social Security. Therefore, general members can expect to receive benefits<br />
at retirement from both SDCERA (based on years of employment with<br />
the County of San Diego) and from Social Security (based on years of all<br />
employment covered by Social Security).<br />
Due to this integration, when SDCERA calculates a General member’s<br />
retirement benefit, an adjustment is made because General members<br />
pay reduced contributions on the first $350 of monthly earnings. The<br />
integration adjustment varies from approximately $2.30 per year worked<br />
(for retirement at age 50) up to about $3.50 per year worked for retirement
18<br />
at age 60. When you visit www.<strong>sdcera</strong>.org and use the online retirement<br />
benefit calculator, the Social Security integration adjustment is automatically<br />
included in the estimate amounts.<br />
Safety members do not contribute to Social Security and cannot expect to<br />
receive a benefit from Social Security based on their years of employment<br />
with the County of San Diego. Therefore, there is no adjustment made<br />
for Social Security integration when a Safety member’s SDCERA retirement<br />
benefit is calculated.<br />
<strong>Retirement</strong> benefit calculation example<br />
<strong>Retirement</strong> age factor for age 60 = 3%<br />
Service credit = 25 years<br />
Final average monthly compensation = $4,000<br />
Social Security integration factor for age 60 = $3.50<br />
step 1: Multiply retirement age factor by service credit<br />
3% x 25 years = 75%<br />
step 2: Multiply percentage in step 1 by final average<br />
monthly compensation<br />
75% x $4,000 = $3,000<br />
step 3: Multiply Social Security integration factor by service credit<br />
(General members only)<br />
$3.50 x 25 years = $87.50<br />
final step: Subtract the amount in step 3 ($87.50) from the amount<br />
in step 2 ($3,000)<br />
How divorce affects<br />
SDCERA retirement<br />
benefits<br />
<strong>Retirement</strong> benefits earned<br />
during marriage are considered<br />
community property<br />
assets under California state<br />
law. These assets must be<br />
considered in the property<br />
settlement agreement and<br />
are subject to disposition by<br />
the court. If your retirement<br />
account is subject to division,<br />
a Domestic Relations Order<br />
(DRO) (which is separate<br />
from your marital settlement<br />
agreement) is required. The<br />
DRO process is explained<br />
in detail in the Dividing<br />
Community Property <strong>booklet</strong>.<br />
Any delay in notifying<br />
SDCERA about your<br />
dissolution could delay<br />
your retirement payment.<br />
$3,000 – $87.50 = $2,912.50 monthly retirement benefit<br />
Visit www.<strong>sdcera</strong>.org and use the retirement benefit<br />
calculator to calculate your own estimate.
When you are ready to retire, contact SDCERA two<br />
months prior to your retirement date and request a<br />
retirement packet. Your application will be personalized<br />
and mailed to your home address.
Benefit options<br />
available from SDCERA
21<br />
Selecting a retirement<br />
benefit option<br />
In addition to age, service credit and final compensation, the amount of your retirement<br />
benefit is also affected by the option you select at the time of your retirement. The<br />
payment options determine the benefit that will be paid to you for your lifetime as well<br />
as any benefit that will continue to be paid to your survivor after your death. You must<br />
make a selection on your retirement application and your choice cannot be changed.<br />
Unmodified option<br />
The Temporary Supplement<br />
is available regardless of which<br />
option you select. If you retire<br />
before age 62 and will be eligible<br />
for Social Security benefits<br />
at age 62, you will need to<br />
decide whether you will elect<br />
the Temporary Supplement<br />
as part of your benefit. The<br />
Temporary Supplement<br />
increases benefits prior to<br />
age 62 and reduces benefits<br />
after age 62. Read more about<br />
the Temporary Supplement<br />
option on page 23.<br />
This option provides the highest monthly benefit for your lifetime.<br />
Upon your death, your eligible beneficiary receives a 60% survivor’s<br />
continuance for their life. Your beneficiary must be a spouse/registered<br />
domestic partner or minor child(ren). There is no age requirement for your<br />
spouse/partner, but you must be married/registered for at least 12 months<br />
prior to your retirement date. If you are not married/registered for at<br />
least 12 months prior to your retirement date, or if you marry after you are<br />
retired, you must be married/registered for at least two years prior to your<br />
death, and in this case your spouse/partner must be at least age 55 on the<br />
date of your death.<br />
If you do not have an eligible spouse/partner at the time of your death, the<br />
survivor’s continuance can be paid to your eligible minor child(ren). To be<br />
eligible, a child must be unmarried and under age 18, or unmarried and<br />
under age 22 if enrolled as a full time student in an accredited college.<br />
If you do not have an eligible spouse/partner or minor child to receive the<br />
survivor’s continuance at the time of your death, the survivor’s continuance<br />
will not be paid. However, if there is any money left in your member<br />
contribution account, it can be paid as a one-time lump-sum payment to<br />
any beneficiary you have designated.<br />
If you elect this option, you cannot change your beneficiary after retirement,<br />
unless you marry and your new spouse/registered domestic partner<br />
becomes eligible for the continuance.
22<br />
Option 1: cash refund annuity<br />
This option provides a slightly reduced monthly benefit for your lifetime. Upon<br />
your death, your eligible beneficiary receives a one-time lump-sum payment of<br />
the money left in your contribution account. The amount left in your account will<br />
be based on how long you collected a benefit prior to your death. In some cases,<br />
all the contributions have been paid as part of your monthly benefit so there are<br />
no contributions remaining, and your beneficiary would not receive a payment. If<br />
you elect this option, you may change your beneficiary after retirement.<br />
Option 2: 100% joint and survivor<br />
This option provides a reduced monthly benefit for your lifetime. Upon your<br />
death, your eligible beneficiary receives a 100% survivor’s continuance (the<br />
same benefit amount you were receiving) for their life. To be eligible for the<br />
continuance, your beneficiary must have an insurable interest in your life. The<br />
amount of your benefit is reduced based on the age difference between you and<br />
your beneficiary. The younger your beneficiary is, the greater your benefit<br />
reduction will be. If you elect this option, you cannot change your beneficiary<br />
after retirement. If your beneficiary dies before you, the survivor’s continuance<br />
is not paid.<br />
Your personalized SDCERA<br />
service retirement application<br />
includes the various benefit<br />
amounts available to you based<br />
on the different options. You<br />
should familiarize yourself with<br />
your choices so you make the<br />
best decision at retirement.<br />
Option 3: 50% joint and survivor<br />
This option provides a reduced monthly benefit for your lifetime. Upon your<br />
death, your eligible beneficiary receives a 50% survivor’s continuance (50%<br />
of the benefit you were receiving) for their life. To be eligible for the continuance,<br />
your beneficiary must have an insurable interest in your life. The amount of your<br />
benefit is reduced based on the age difference between you and your beneficiary.<br />
The younger your beneficiary is, the greater your benefit reduction will be. If<br />
you elect this option, you cannot change your beneficiary after retirement. If your<br />
beneficiary dies before you, the survivor’s continuance is not paid.<br />
If you elect the Temporary<br />
Supplement (see page 23) the<br />
survivor’s continuance will be<br />
based on the regular benefit<br />
amount (not on the Temporary<br />
Supplement amount).<br />
Option 4: multiple beneficiaries<br />
This option provides a reduced monthly benefit for your lifetime. You may<br />
name more than one eligible beneficiary to receive a survivor’s continuance<br />
upon your death. This option is generally used as part of a dissolution of<br />
marriage settlement to provide a continuance to both a previous and a current<br />
spouse/partner.
23<br />
Considering the<br />
Temporary Supplement<br />
to benefit options<br />
Electing the Temporary Supplement gives you an increased<br />
retirement benefit from SDCERA until you are age 62. Then,<br />
beginning at age 62, you will receive a reduced benefit for<br />
the rest of your life.<br />
Ask yourself this question when<br />
considering the Temporary<br />
Supplement: Is it more<br />
important for you to have a<br />
greater retirement benefit from<br />
retirement to age 62 or is it more<br />
important for you to have a steady<br />
income stream throughout<br />
retirement?<br />
If your choice is to elect more<br />
money up front and less money<br />
later, you may determine that<br />
the Temporary Supplement<br />
option works well within your<br />
retirement plans.<br />
However, if your choice is to<br />
receive a steady SDCERA benefit<br />
amount, without an increase or a<br />
decrease, you may determine that<br />
the Temporary Supplement<br />
option is not a good fit for you.<br />
The Temporary Supplement applies to all benefit options. Regardless of<br />
which option you select, if you retire before age 62 and will be eligible<br />
for Social Security benefits later when you reach age 62, you will need to<br />
decide whether to elect the Temporary Supplement as part of your SDCERA<br />
benefit. If you retire at or after age 62, if you will not be eligible for Social<br />
Security benefits or if your retirement benefit is based on a disability<br />
retirement, then you are not eligible for the Temporary Supplement.<br />
If you elect the Temporary Supplement, you will receive a greater retirement<br />
benefit (more money from SDCERA) until age 62. Then, beginning<br />
at age 62 you will receive a reduced SDCERA retirement benefit (less<br />
money from SDCERA) for the rest of your life. The expectation is that at<br />
age 62, you will begin receiving your Social Security benefit and the two<br />
retirement incomes (from SDCERA and Social Security) will approximate<br />
the income that SDCERA paid prior to age 62.<br />
Consider the Temporary Supplement carefully because SDCERA does<br />
not calculate the reduced benefit amount (after age 62) based on your<br />
actual Social Security benefit amount. Rather, your SDCERA benefit<br />
amounts (both before and after age 62) are calculated based on an<br />
estimate at the time of your retirement and are not adjusted later.<br />
Remember, when you elect the Temporary Supplement, the benefit you<br />
receive from SDCERA after age 62 will be less than the benefit you would<br />
have received if you had not elected this option.
24<br />
The amount you receive as a supplement to your SDCERA benefit<br />
is a percentage of your estimated age-62 Social Security benefit<br />
amount. The percentage you receive is based on your retirement<br />
age as follows:<br />
Age PERCENT<br />
50 42.83 %<br />
51 45.69<br />
52 48.78<br />
53 52.13<br />
54 55.76<br />
55 59.71<br />
56 64.01<br />
The chart shows your<br />
SDCERA benefit before<br />
age 62 is increased by a<br />
percentage of your estimated<br />
age-62 Social Security benefit,<br />
but is not increased by the<br />
full amount. However,<br />
beginning at age 62, your<br />
benefit will be reduced by<br />
100% of the estimated age-62<br />
Social Security benefit, which<br />
is the full amount.<br />
57 68.71<br />
58 73.85<br />
59 79.48<br />
60 85.67<br />
61 92.48<br />
Use the retirement benefit calculator at www.<strong>sdcera</strong>.org<br />
to see benefit amounts that include the Temporary Supplement.
25<br />
Receiving<br />
your retirement benefit<br />
SDCERA calculates retirement benefit estimates for you while<br />
you are working and you will be able to review the estimates<br />
on the personalized statement you receive from SDCERA each<br />
year. When you are ready to retire, contact SDCERA to request<br />
a final benefit estimate.<br />
If you have a question about<br />
personalized account information,<br />
a calculation estimate or<br />
a benefit amount, you may<br />
submit a written inquiry to:<br />
SDCERA Member Services<br />
2275 Rio Bonito Way<br />
Suite 200<br />
San Diego, CA 92108-1685<br />
Requesting periodic estimates and final benefits<br />
Use the retirement benefit calculator at www.<strong>sdcera</strong>.org to calculate<br />
estimates at various ages. When you are ready to retire, contact SDCERA<br />
about two months prior to your retirement date and request a retirement<br />
packet. The packet includes a personalized application, tax withholding<br />
election form and direct deposit form—the forms necessary to process<br />
your retirement.<br />
Maximum benefits payable to you<br />
SDCERA will not pay a retirement benefit amount that is greater than 100%<br />
of your final average monthly compensation (see page 16).<br />
Additionally, federal law limits the amount of compensation that may be<br />
used to calculate your benefits. The limit for 2008 is $230,000. The limit<br />
may be revised in accordance with the Internal Revenue Code (IRC)<br />
regulations. If you first became a member of SDCERA before July 1, 1996,<br />
you are not affected by this IRC Section 401(a)(17) limit.<br />
The IRC regulations also place a limit on the amount of pension benefits<br />
you can receive. Under IRC Section 415(b), you generally may not receive<br />
more than $185,000 annually (effective January 1, 2008) and the amount<br />
is adjusted based on your retirement age. (Refer to www.<strong>sdcera</strong>.org<br />
for current amounts.) Some Safety members employed by the Sheriff’s<br />
department are not impacted by the adjusted limits of IRC Section 415(b).<br />
The County of San Diego has implemented an Excess Benefit <strong>Plan</strong>, which<br />
is currently designed to pay the additional amount if you accrue a benefit<br />
that is more than the annual limit. The Excess Benefit <strong>Plan</strong> is not part of the<br />
tax-qualified SDCERA retirement plan and is subject to different tax rules.
26<br />
SDCERA will notify you at the time of your retirement if your benefit<br />
is affected by either of these IRC limits, or you may contact SDCERA for<br />
more information.<br />
Cost of living adjustments<br />
After you retire, you are eligible for an annual cost of living adjustment<br />
(COLA) up to 3%. If the Consumer Price Index (CPI) for San Diego is<br />
greater than 3%, the amount over 3% is saved for use in future years.<br />
Generally, your retirement benefit is<br />
not subject to garnishment except<br />
a court may order SDCERA to pay<br />
a portion of your benefit to a former<br />
spouse or registered domestic partner<br />
to cover judgment for spousal/<br />
partner or child support. Your<br />
benefit is also subject to levy by<br />
the IRS for payment of delinquent<br />
federal income taxes.<br />
For example, if the CPI is 4%, SDCERA would increase<br />
your benefit by 3% and save 1%. The following year, if<br />
the CPI was 2% we would use the 1% from the saved<br />
bank and still give you a 3% increase.<br />
The COLA is a valuable benefit and will help your benefit payment keep<br />
up with inflation throughout your retirement.
Learn more about your SDCERA benefits and available<br />
member resources when you attend an educational<br />
workshop at SDCERA or an Outreach meeting<br />
at your work site.
Additional information about<br />
SDCERA benefits
29<br />
Survivor benefits from SDCERA<br />
Benefits available to beneficiaries upon your death are<br />
paid based on whether you die while you are still working,<br />
or after you retire.<br />
Survivor benefits for active members<br />
SDCERA does not offer<br />
life insurance; however,<br />
there is a death benefit of<br />
$3,500, which is paid to<br />
your designated beneficiary.<br />
This benefit is available after<br />
you have retired if your last<br />
active, public service prior<br />
to retirement was with the<br />
County of San Diego. If<br />
you work in another public<br />
agency prior to your retirement,<br />
that agency generally<br />
pays a death benefit.<br />
If you die as a vested (five or more years of service credit) active member,<br />
SDCERA considers your death date as your retirement date and a survivor’s<br />
continuance begins the following day. The benefit in this case could be<br />
paid to an eligible spouse/registered domestic partner or minor children.<br />
Other payment options are available and the Survivor and Beneficiary<br />
Information <strong>booklet</strong> includes more detail.<br />
Survivor benefits for retired members<br />
Survivor benefits paid after you retire are based on the retirement benefit<br />
option you select (see page 21). If you select the Unmodified option, your<br />
eligible spouse/registered domestic partner will receive a 60% survivor’s<br />
continuance for life.<br />
SDCERA should be notified as soon as possible following a member’s<br />
death. After a death report is filed and specific documentation is submitted,<br />
SDCERA coordinates the payment of survivor benefits.
30<br />
Supplemental benefit allowance<br />
A supplemental benefit allowance is available to eligible General, Tier<br />
A members and Safety members covered by the 3% at age 50 benefit formula.<br />
Generally, you must have at least 10 years of SDCERA service credit to be<br />
eligible for an allowance. If your retirement is based on a disability, you may<br />
be eligible for this allowance regardless of your years of service credit.<br />
If eligible at retirement, in addition to your monthly retirement payment,<br />
you will receive a monthly Supplemental Benefit Allowance (SBA). The<br />
SBA amount will be subject to tax and may be used to offset the cost of<br />
health insurance premiums or however you choose. The SBA is not a<br />
vested SDCERA benefit and is not guaranteed. The allowance may be<br />
reduced or discontinued at any time. The Board of <strong>Retirement</strong> periodically<br />
determines whether to continue the SBA. Review the chart for the current<br />
allowance amounts, based on years of service credit.<br />
YEARS OF SDCERA MONTHLY<br />
SERVICE CREDIT<br />
SBA<br />
Less than 10 0<br />
10 $ 200<br />
SDCERA currently offers<br />
health insurance plans for<br />
retired members. Medical<br />
and dental plans are<br />
available to both in-state<br />
and out-of-state residents.<br />
Read more in the Health<br />
Insurance <strong>Plan</strong>s for Retired<br />
Members <strong>booklet</strong>.<br />
11 $ 220<br />
12 $ 240<br />
13 $ 260<br />
14 $ 280<br />
15 $ 300<br />
16 $ 320<br />
17 $ 340<br />
18 $ 360<br />
19 $ 380<br />
20 or more $ 400
31<br />
Disability retirement<br />
If you become disabled, physically or mentally, from performing your job<br />
duties, regardless of your age, you may apply for disability retirement.<br />
If you are reasonably certain<br />
that you will no longer be<br />
able to perform your usual<br />
job duties due to a disability<br />
(injury, illness or disease),<br />
contact SDCERA immediately<br />
to begin the process<br />
of applying for a disability<br />
retirement benefit.<br />
If the Board of <strong>Retirement</strong> finds you are permanently incapacitated<br />
(substantial inability to perform your usual job duties), you may be<br />
eligible to receive a disability retirement benefit.<br />
For example, if you injure your knee and your physician gives<br />
you a permanent work restriction that your department is able<br />
to accommodate, you would not be eligible for a disability<br />
retirement. However, if your department could not accommodate<br />
the restriction, and you were no longer able to work<br />
in your usual job classification, you may be eligible for a<br />
disability retirement benefit.
32<br />
There are two types of disability retirement<br />
benefits available<br />
(1) Service-connected disability retirement<br />
If you are permanently incapacitated, physically or mentally, from<br />
performing your usual job duties, and your incapacity is the result of a<br />
job-related injury, illness or disease, you may be eligible for a serviceconnected<br />
disability retirement benefit, regardless of your age or length<br />
of service.<br />
Your incapacity must arise from the course of your job and your job must<br />
contribute substantially to your incapacity. The monthly benefit is equal to<br />
50% of your highest final average monthly compensation or your service<br />
retirement benefit, whichever is greater.<br />
If you establish reciprocity<br />
between SDCERA and<br />
another public agency,<br />
disability retirement filing<br />
requirements and benefit<br />
calculations may be different<br />
for you. Contact SDCERA<br />
for information if this<br />
situation affects you.<br />
(2) Nonservice-connected disability retirement<br />
If you are permanently incapacitated, physically or mentally, from<br />
performing your usual job duties due to an injury, illness or disease that<br />
is not job-related, you may be eligible for a nonservice-connected<br />
disability retirement benefit.<br />
To receive a benefit, in addition to the permanent incapacity requirement,<br />
you must also have a minimum of five years of retirement service credit<br />
or a combination of SDCERA and reciprocal retirement service credit.<br />
The monthly benefit is based on a disability formula or a service retirement<br />
benefit, whichever is greater.
33<br />
APPROXIMATE AMOUNT OF RETIREMENT BENEFIT PER MONTH<br />
GENERAL TIER A MEMBERS Percentage of final compensation*<br />
AGES<br />
Years of<br />
60 &<br />
Service 50 51 52 53 54 55 56 57 58 59 Over<br />
10 20.00 21.00 22.00 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00<br />
11 22.00 23.10 24.20 25.30 26.40 27.50 28.60 29.70 30.80 31.90 33.00<br />
12 24.00 25.20 26.40 27.60 28.80 30.00 31.20 32.40 33.60 34.80 36.00<br />
13 26.00 27.30 28.60 29.90 31.20 32.50 33.80 35.10 36.40 37.70 39.00<br />
14 28.00 29.40 30.80 32.20 33.60 35.00 36.40 37.80 39.20 40.60 42.00<br />
15 30.00 31.50 33.00 34.50 36.00 37.50 39.00 40.50 42.00 43.50 45.00<br />
16 32.00 33.60 35.20 36.80 38.40 40.00 41.60 43.20 44.80 46.40 48.00<br />
17 34.00 35.70 37.40 39.10 40.80 42.50 44.20 45.90 47.60 49.30 51.00<br />
18 36.00 37.80 39.60 41.40 43.20 45.00 46.80 48.60 50.40 52.20 54.00<br />
19 38.00 39.90 41.80 43.70 45.60 47.50 49.40 51.30 53.20 55.10 57.00<br />
20 40.00 42.00 44.00 46.00 48.00 50.00 52.00 54.00 56.00 58.00 60.00<br />
21 42.00 44.10 46.20 48.30 50.40 52.50 54.60 56.70 58.80 60.90 63.00<br />
22 44.00 46.20 48.40 50.60 52.80 55.00 57.20 59.40 61.60 63.80 66.00<br />
23 46.00 48.30 50.60 52.90 55.20 57.50 59.80 62.10 64.40 66.70 69.00<br />
24 48.00 50.40 52.80 55.20 57.60 60.00 62.40 64.80 67.20 69.60 72.00<br />
25 50.00 52.50 55.00 57.50 60.00 62.50 65.00 67.50 70.00 72.50 75.00<br />
26 52.00 54.60 57.20 59.80 62.40 65.00 67.60 70.20 72.80 75.40 78.00<br />
27 54.00 56.70 59.40 62.10 64.80 67.50 70.20 72.90 75.60 78.30 81.00<br />
28 56.00 58.80 61.60 64.40 67.20 70.00 72.80 75.60 78.40 81.20 84.00<br />
29 58.00 60.90 63.80 66.70 69.60 72.50 75.40 78.30 81.20 84.10 87.00<br />
30 60.00 63.00 66.00 69.00 72.00 75.00 78.00 81.00 84.00 87.00 90.00<br />
31 62.00 65.10 68.20 71.30 74.40 77.50 80.60 83.70 86.80 89.90 93.00<br />
32 64.00 67.20 70.40 73.60 76.80 80.00 83.20 86.40 89.60 92.80 96.00<br />
33 69.30 72.60 75.90 79.20 82.50 85.80 89.10 92.40 95.70 99.00<br />
34 74.80 78.20 81.60 85.00 88.40 91.80 95.20 98.60 100.00<br />
35 80.50 84.00 87.50 91.00 94.50 98.00 100.00<br />
36 86.40 90.00 93.60 97.20 100.00<br />
37 92.50 96.20 99.90<br />
38 98.80 100.00<br />
* This table is for reference only. The reduction for Social Security integration is not included. Read more on page 17.
APPROXIMATE AMOUNT OF RETIREMENT BENEFIT PER MONTH<br />
SAFETY MEMBERS PERCENTAGE OF FINAL COMPENSATION<br />
34<br />
AGES<br />
Years of<br />
50 &<br />
Service 41 42 43 44 45 46 47 48 49 Over<br />
10 30.00<br />
11 33.00<br />
12 36.00<br />
13 39.00<br />
14 42.00<br />
15 45.00<br />
16 48.00<br />
17 51.00<br />
18 54.00<br />
19 57.00<br />
20 37.55 39.75 42.02 44.38 46.83 49.36 52.07 54.51 57.13 60.00<br />
21 39.43 41.74 44.13 46.60 49.17 51.82 54.67 57.24 59.99 63.00<br />
22 41.30 43.73 46.23 48.82 51.51 54.29 57.27 59.96 62.85 66.00<br />
23 43.18 45.71 48.33 51.04 53.85 56.76 59.88 62.69 65.70 69.00<br />
24 47.70 50.43 53.26 56.20 59.23 62.48 65.41 68.56 72.00<br />
25 52.53 55.48 58.54 61.70 65.09 68.14 71.42 75.00<br />
26 57.70 60.88 64.16 67.69 70.86 74.27 78.00<br />
27 63.22 66.63 70.29 73.59 77.13 81.00<br />
28 69.10 72.90 76.31 79.98 84.00<br />
29 75.50 79.04 82.84 87.00<br />
30 81.77 85.70 90.00<br />
31 88.55 93.00<br />
32 96.00<br />
33 99.00<br />
34 100.00<br />
Use the calculator at www.<strong>sdcera</strong>.org<br />
to see retirement benefit estimates based on various ages.
APPROXIMATE AMOUNT OF SDCERA RETIREMENT BENEFIT PER MONTH<br />
GENERAL TIER I MEMBERS Percentage of final compensation*<br />
AGES<br />
Years of<br />
Service 50 51 52 53 54 55 56 57 58 59 60 61<br />
62 &<br />
Over<br />
10 13.36 14.11 14.91 15.76 16.69 17.70 18.80 20.00 20.89 22.10 23.37 24.73 26.19<br />
11 14.70 15.52 16.40 17.34 18.36 19.47 20.68 22.00 22.98 24.31 25.71 27.20 28.80<br />
12 16.03 16.93 17.89 18.92 20.03 21.24 22.56 24.00 25.07 26.52 28.05 29.68 31.42<br />
13 17.37 18.35 19.38 20.49 21.70 23.01 24.44 26.00 27.16 28.72 30.38 32.15 34.04<br />
14 18.71 19.76 20.87 22.07 23.37 24.78 26.32 28.00 29.25 30.93 32.72 34.62 36.66<br />
15 20.04 21.17 22.36 23.65 25.04 26.55 28.20 30.00 31.34 33.14 35.06 37.10 39.28<br />
16 21.38 22.58 23.85 25.22 26.71 28.32 30.08 32.00 33.43 35.35 37.40 39.57 41.90<br />
17 22.72 23.99 25.34 26.80 28.38 30.09 31.96 34.00 35.52 37.56 39.73 42.04 44.52<br />
18 24.05 25.40 26.83 28.38 30.05 31.86 33.84 36.00 37.61 39.77 42.07 44.51 47.13<br />
19 25.39 26.81 28.33 29.95 31.71 33.63 35.72 38.00 39.70 41.98 44.41 46.99 49.75<br />
20 26.72 28.22 29.82 31.53 33.38 35.40 37.60 40.00 41.79 44.19 46.74 49.46 52.37<br />
21 28.06 29.64 31.31 33.10 35.05 37.17 39.48 42.00 43.88 46.40 49.08 51.93 54.99<br />
22 29.40 31.05 32.80 34.68 36.72 38.94 41.36 44.00 45.97 48.61 51.42 54.41 57.61<br />
23 30.73 32.46 34.29 36.26 38.39 40.71 43.24 46.00 48.06 50.82 53.76 56.88 60.23<br />
24 32.07 33.87 35.78 37.83 40.06 42.48 45.12 48.00 50.15 53.03 56.09 59.35 62.85<br />
25 33.41 35.28 37.27 39.41 41.73 44.25 47.00 50.00 52.24 55.24 58.43 61.83 65.47<br />
26 34.74 36.69 38.76 40.99 43.40 46.02 48.87 52.00 54.32 57.45 60.77 64.30 68.08<br />
27 36.08 38.10 40.25 42.56 45.07 47.79 50.75 54.00 56.41 59.66 63.10 66.77 70.70<br />
28 37.41 39.51 41.74 44.14 46.74 49.56 52.63 56.00 58.50 61.87 65.44 69.24 73.32<br />
29 38.75 40.92 43.23 45.72 48.41 51.33 54.51 58.00 60.59 64.08 67.78 71.72 75.94<br />
30 40.09 42.34 44.72 47.29 50.08 53.10 56.39 60.00 62.68 66.29 70.12 74.19 78.56<br />
31 41.42 43.75 46.21 48.87 51.75 54.87 58.27 62.00 64.77 68.50 72.45 76.66 81.18<br />
32 42.76 45.16 47.71 50.44 53.41 56.64 60.15 64.00 66.86 70.71 74.79 79.14 83.80<br />
33 46.57 49.20 52.02 55.08 58.41 62.03 66.00 68.95 72.92 77.13 81.61 86.41<br />
34 50.69 53.60 56.75 60.18 63.91 68.00 71.04 75.13 79.46 84.08 89.03<br />
35 55.17 58.42 61.95 65.79 70.00 73.13 77.34 81.80 86.56 91.65<br />
36 60.09 63.72 67.67 72.00 75.22 79.55 84.14 89.03 94.27<br />
37 65.49 69.55 74.00 77.31 81.76 86.48 91.50 96.89<br />
38 71.43 76.00 79.40 83.96 88.81 93.97 99.51<br />
39 78.00 81.49 86.17 91.15 96.45 100.00<br />
40 83.58 88.38 93.49 98.92 100.00<br />
41 90.59 95.83 100.00 100.00<br />
42 98.16 100.00 100.00<br />
* This table is for reference only. The reduction for Social Security integration is not included.
35<br />
Index:<br />
1937 Act 4<br />
26 consecutive pay periods 16<br />
30 years of service credit 5<br />
active member death benefits 29<br />
age factor 15<br />
annual COLA 26<br />
annual interest 6<br />
beneficiary 21<br />
beneficiary designation 6<br />
benefit options 21<br />
biweekly payroll deductions 6<br />
board of retirement 4<br />
calculating your retirement benefit 15<br />
California government code 4<br />
CalPERS 7<br />
CalSTRS 7<br />
COLA 26<br />
COLA bank 26<br />
coming back to work 12<br />
community property 18<br />
Consumer Price Index (CPI) 26<br />
contribution account 6<br />
contribution calculator 5<br />
contribution rates 5<br />
cost of living adjustments 26<br />
cost sharing 5<br />
death benefit 29<br />
deferred membership 11<br />
direct deposit 25<br />
disability retirement 23 30 31<br />
disability retirement and reciprocity 8<br />
dissolution of marriage 18<br />
dividing community property 18<br />
divorce 18<br />
Domestic partners 21 26 29<br />
Domestic Relations Order (DRO) 18<br />
earliest age to retire 9<br />
eligibility to retire 9<br />
eligible earnings categories 16<br />
employer contributions 5<br />
employer-paid offset 5<br />
entering membership 3<br />
entry age 4<br />
establishing reciprocity 7<br />
Excess Benefit <strong>Plan</strong> 25<br />
final average monthly compensation 16<br />
final compensation 16<br />
final compensation calculation examples 17<br />
funding retirement benefits 5<br />
garnishment 26<br />
general membership 3<br />
governance 4<br />
health insurance plans 30<br />
inactive-nonvested membership 11<br />
incoming reciprocity 7<br />
insurable interest 22<br />
interest rate 6<br />
investment earnings 6<br />
IRC Section 401(a)(17) limit 25<br />
IRC Section 415(b) 25
36<br />
leave without pay 15<br />
leaving before retirement 11<br />
legal notice 37<br />
life insurance 29<br />
lifetime benefit 9<br />
maximum benefits payable to you 25<br />
member contribution account 6<br />
member contributions 5<br />
Member Sworn Statement 6<br />
membership eligibiltity 3<br />
nonservice-connected disability retirement 32<br />
offset 5<br />
Option 1: cash refund annuity 22<br />
Option 2: 100% joint and survivor 22<br />
Option 3: 50% joint and survivor 22<br />
Option 4: multiple beneficiaries 22<br />
opt-out period 3<br />
outgoing reciprocity 7 12<br />
percentage factors 15 33 34<br />
permanent incapacity 31<br />
permanently employed 3<br />
personalized retirement application 22<br />
provisional worker 3<br />
public agencies 7<br />
purchasing service credit 15<br />
receiving your retirement benefit 25<br />
reciprocal agencies 8<br />
reciprocity 7 12<br />
re-employment 12<br />
re-entering membership 12<br />
refunds 11<br />
registered domestic partner 21 22 26<br />
representation unit 5<br />
requesting final benefits 25<br />
requesting periodic estimates 25<br />
retirement application 22<br />
retirement benefit calculation example 18<br />
retirement benefit calculator 18 25<br />
retirement eligibility 9<br />
safety membership 3<br />
SBA 30<br />
SDCERA Member Services 25<br />
seasonal worker 3<br />
selecting a retirement benefit option 21<br />
service credit 15<br />
service-connected disability retirement 32<br />
Social Security benefits 23<br />
Social Security integration factor 17<br />
student worker 3<br />
subsequent period of work 12<br />
supplemental benefit allowance 30<br />
survivor benefits 29<br />
survivor’s continuance 21 22<br />
sworn statement 6<br />
tax withholding 25<br />
Temporary supplement 21 23<br />
Tier A 3<br />
Unmodified option 21<br />
vested 9<br />
voluntary time off 15<br />
withdrawals 11<br />
written inquiry 25
Legal notice<br />
This summary plan description provides disclosure of the terms and conditions of SDCERA membership,<br />
retirement, disability and death benefits available to members. It is designed to give you this information<br />
as simply and accurately as possible as of the date of issuance of this <strong>booklet</strong>. SDCERA is governed by<br />
the County Employees <strong>Retirement</strong> Law of 1937 (Government Code Section 31450 et seq.) as it has been<br />
adopted and implemented by the San Diego County Board of Supervisors and the SDCERA Board of<br />
<strong>Retirement</strong>. If there is any inconsistency between this <strong>booklet</strong> and the governing law, the law will govern.<br />
Decisions relating to the plan will be made after reference to the statutes and any resolutions, regulations<br />
and policies governing administration of SDCERA as they exist at the same time of the decisions.<br />
Printed 3/2008
SAN DIEGO COUNTY EMPLOYEES RETIREMENT ASSOCIATION<br />
2275 Rio Bonito Way, Suite 200<br />
San Diego, CA 92108-1685<br />
Call Center: 619.515.6800 Toll Free: 1.888.4.SDCERA www.<strong>sdcera</strong>.org