Termination Due to Layoff Fact sheet for active and deferred ... - sdcera
Termination Due to Layoff Fact sheet for active and deferred ... - sdcera
Termination Due to Layoff Fact sheet for active and deferred ... - sdcera
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SAN DIEGO COUNTY EMPLOYEES RETIREMENT ASSOCIATION<br />
Strength. Service. Commitment.<br />
<strong>Termination</strong> <strong>Due</strong> <strong>to</strong> <strong>Layoff</strong><br />
<strong>Fact</strong> <strong>sheet</strong> <strong>for</strong> <strong>active</strong> <strong>and</strong> <strong>deferred</strong> members<br />
If you terminate employment <strong>for</strong> any reason prior <strong>to</strong> retirement,<br />
you must make a decision about your SDCERA retirement<br />
contributions <strong>and</strong> interest earned. When you prepare <strong>to</strong> terminate<br />
employment, be certain <strong>to</strong> coordinate your termination date<br />
with your department payroll representative <strong>and</strong> verify that<br />
SDCERA has your correct address. Use this fact <strong>sheet</strong> <strong>to</strong> help you<br />
underst<strong>and</strong> your options as a vested or nonvested member.<br />
Vested <strong>and</strong> nonvested members<br />
You are vested when you have five years of SDCERA service credit<br />
or a combination of SDCERA <strong>and</strong> reciprocal service credit. If you<br />
terminate employment with less than five years of service credit,<br />
you are a nonvested member. See below <strong>to</strong> determine the options<br />
available <strong>to</strong> you as a vested or nonvested member.<br />
If you do not make a<br />
decision about your<br />
account when you<br />
terminate, you will<br />
au<strong>to</strong>matically be<br />
placed in <strong>deferred</strong><br />
membership status.<br />
1Collect a retirement benefit (vested members only)<br />
If you are eligible <strong>to</strong> retire, you may choose <strong>to</strong> begin<br />
receiving your monthly retirement benefit. Generally,<br />
members are eligible <strong>to</strong> retire at age 50 (age 55 <strong>for</strong><br />
General, Tier B members) with 10 or more years<br />
of SDCERA/reciprocal service credit. You may also<br />
retire regardless of your age with 30 years of service<br />
credit (General members) or 20 years of service credit<br />
(Safety members).<br />
If you are vested, but do not have 10 years of service<br />
credit, you may retire with a benefit based on your years<br />
of SDCERA service credit, when you would have had<br />
10 years of service credit had you remained working.<br />
Your retirement benefits do not au<strong>to</strong>matically begin when<br />
you become eligible <strong>to</strong> retire. You must contact SDCERA<br />
prior <strong>to</strong> your retirement date <strong>to</strong> request a service retirement<br />
application. The application must be completed <strong>and</strong><br />
the necessary <strong>for</strong>ms submitted <strong>to</strong> SDCERA be<strong>for</strong>e your<br />
retirement will be processed.<br />
2275 Rio Boni<strong>to</strong> Way, Suite 200 • San Diego, CA 92108 Call Center 619.515.6800 or 888.4.SDCERA www.<strong>sdcera</strong>.org twitter.com/<strong>sdcera</strong>
2Become a <strong>deferred</strong> member<br />
You may leave your accumulated retirement<br />
contributions on deposit with SDCERA.<br />
Interest on your contributions will be credited<br />
twice each year at a rate determined by the<br />
Board of Retirement. Your <strong>to</strong>tal contributions<br />
<strong>and</strong> earned interest will be recorded on the<br />
member statement you receive annually.<br />
Any future service credit earned with<br />
SDCERA or in a reciprocal retirement<br />
system will count <strong>to</strong>ward meeting vesting <strong>and</strong><br />
retirement eligibility requirements as long<br />
as you leave your contributions on deposit<br />
with all systems, do not have overlapping<br />
service, <strong>and</strong> (with limited exception) retire<br />
simultaneously from all reciprocal systems.<br />
You may choose <strong>to</strong> withdraw your funds at<br />
any time.<br />
If vested, your retirement benefit will be paid<br />
in the future, usually when you meet the<br />
eligibility criteria <strong>and</strong> choose <strong>to</strong> retire.<br />
The Internal Revenue Service limits the<br />
ability <strong>to</strong> remain in <strong>deferred</strong> membership<br />
status after the age of 70 ½. SDCERA will<br />
contact you if this situation affects you.<br />
4<br />
Request a refund<br />
You may withdraw your accumulated<br />
retirement contributions, plus interest. You<br />
may request a withdrawal <strong>and</strong> roll over all<br />
or a portion of the distribution <strong>to</strong> an IRA<br />
or another employer’s qualified plan that<br />
accepts rollovers. Be aware that when you<br />
are vested <strong>and</strong> receive a refund of your<br />
SDCERA contribution account (or close<br />
an account with a zero balance) you lose<br />
your right <strong>to</strong> receive a monthly retirement<br />
benefit at a later date <strong>and</strong> may also incur<br />
tax penalties.<br />
If you do not make a decision about your account<br />
when you terminate, you will au<strong>to</strong>matically be<br />
placed in <strong>deferred</strong> membership status.<br />
Returning <strong>to</strong> <strong>active</strong> membership<br />
If you are temporarily laid off <strong>and</strong> reinstated<br />
within one year, it is not considered a break in<br />
service. There<strong>for</strong>e, if you return within one year of<br />
separation <strong>and</strong> redeposit withdrawn contributions<br />
within one month, your service credit will<br />
be res<strong>to</strong>red with the earlier entry age used <strong>to</strong><br />
determine your contribution rate.<br />
3<br />
Establish reciprocity<br />
You are eligible <strong>to</strong> establish full reciprocity<br />
if you leave your accumulated retirement<br />
contributions on deposit with SDCERA <strong>and</strong><br />
become a member of a reciprocal retirement<br />
system within six months of leaving <strong>active</strong><br />
SDCERA membership. If you become<br />
a member of a reciprocal system after<br />
six months has passed, you may be eligible <strong>for</strong><br />
limited reciprocity. Any future service credit<br />
earned in reciprocal retirement systems will<br />
count <strong>to</strong>ward meeting SDCERA retirement<br />
eligibility requirements as long as you leave<br />
your contributions on deposit with all<br />
systems, do not have overlapping service, <strong>and</strong><br />
(with limited exception) retire simultaneously<br />
from all reciprocal systems. Read more in the<br />
Reciprocity fact <strong>sheet</strong> available from SDCERA.<br />
If you elect a refund but do not meet the<br />
requirements in the previous paragraph, upon<br />
return <strong>to</strong> service <strong>and</strong> SDCERA membership,<br />
you may still elect <strong>to</strong> redeposit withdrawn<br />
contributions <strong>to</strong> receive service credit <strong>for</strong> your<br />
previous service; however, your current age will<br />
be used <strong>to</strong> determine your contribution rate. Read<br />
more in the Purchasing Service Credit fact <strong>sheet</strong><br />
available at www.<strong>sdcera</strong>.org or from SDCERA.<br />
If you are a <strong>deferred</strong> member <strong>and</strong> are rehired in<br />
a position which qualifies <strong>for</strong> <strong>active</strong> SDCERA<br />
membership, you will retain your original<br />
membership entry age <strong>for</strong> determination of your<br />
member contribution rate, <strong>and</strong> your years of<br />
service credit will be res<strong>to</strong>red.<br />
2275 Rio Boni<strong>to</strong> Way, Suite 200 • San Diego, CA 92108 Call Center 619.515.6800 or 888.4.SDCERA www.<strong>sdcera</strong>.org twitter.com/<strong>sdcera</strong>
SDCERA library<br />
of publications<br />
Service credit purchases<br />
If you terminate employment be<strong>for</strong>e completing a service credit purchase<br />
through payroll deduction, the following options are available:<br />
Booklets<br />
Disability Retirement<br />
Dividing Community<br />
Property<br />
Type of purchase<br />
Sick leave or family<br />
medical leave<br />
Service prior <strong>to</strong><br />
membership<br />
Prior public agency<br />
Redeposit of<br />
withdrawn<br />
contributions<br />
Options<br />
You can make a lump-sum<br />
payment prior <strong>to</strong> your termination<br />
date <strong>to</strong> pay off the contract <strong>and</strong><br />
receive service credit <strong>for</strong> the entire<br />
period of time purchased.<br />
In the absence of a lump-sum<br />
payment, you will receive<br />
partial service credit based on<br />
the payments made through<br />
payroll deduction.<br />
You can make a lump-sum<br />
payment prior <strong>to</strong> your termination<br />
date <strong>to</strong> pay off the contract <strong>and</strong><br />
receive service credit <strong>for</strong> the entire<br />
period of time purchased.<br />
In the absence of a lump-sum<br />
payment, no partial service credit<br />
can be credited.<br />
Health Insurance Plans<br />
<strong>for</strong> Retired Members<br />
Retirement Plan<br />
Survivor <strong>and</strong> Beneficiary<br />
In<strong>for</strong>mation<br />
<strong>Fact</strong> Sheets<br />
Considerations after<br />
<strong>Termination</strong><br />
Considerations be<strong>for</strong>e<br />
Purchasing Service Credit<br />
Deferred Membership<br />
Disability Retirement<br />
Earning Service Credit<br />
Health Insurance Allowance<br />
Health Insurance Plans<br />
Health Insurance<br />
Reimbursement Program<br />
Medicare In<strong>for</strong>mation <strong>for</strong><br />
SDCERA-sponsored<br />
Health Plans<br />
Purchasing Service Credit<br />
Reciprocity<br />
Refunds<br />
Retirement Benefit Options<br />
Retirement Plan Summary<br />
Rollover/Transfer <strong>for</strong><br />
Purchasing Service Credit<br />
Supplemental Benefit<br />
Allowance<br />
Taxation of Retirement<br />
Benefit Payments<br />
Working after Retirement<br />
2275 Rio Boni<strong>to</strong> Way, Suite 200 • San Diego, CA 92108 Call Center 619.515.6800 or 888.4.SDCERA www.<strong>sdcera</strong>.org twitter.com/<strong>sdcera</strong>
This material is available in alternative <strong>for</strong>mats<br />
upon request. Please contact 619.515.6800.<br />
This fact <strong>sheet</strong> provides disclosure of certain terms <strong>and</strong> conditions of SDCERA membership <strong>and</strong> benefits available <strong>to</strong><br />
members. It is designed <strong>to</strong> give you this in<strong>for</strong>mation as simply <strong>and</strong> accurately as possible as of the date of issuance of this fact<br />
<strong>sheet</strong>. SDCERA is governed by the County Employees Retirement Law of 1937 (Government Code Section 31450 et seq.) as<br />
it has been adopted <strong>and</strong> implemented by the San Diego County Board of Supervisors <strong>and</strong> the SDCERA Board of Retirement.<br />
If there is any inconsistency between this fact <strong>sheet</strong> <strong>and</strong> the governing law, the law will govern. Decisions relating <strong>to</strong> the plan<br />
will be made after reference <strong>to</strong> the statutes <strong>and</strong> any resolutions, regulations <strong>and</strong> policies governing administration of SDCERA<br />
as they exist at the same time of the decisions.<br />
Rev. 10/2012<br />
SAN DIEGO COUNTY EMPLOYEES RETIREMENT ASSOCIATION<br />
2275 RIO BONITO WAY, SUITE 200<br />
SAN DIEGO, CA 92108-1685