Termination Due to Layoff Fact sheet for active and deferred ... - sdcera

SAN DIEGO COUNTY EMPLOYEES RETIREMENT ASSOCIATION
Strength. Service. Commitment.
Termination Due to Layoff
Fact sheet for active and deferred members
If you terminate employment for any reason prior to retirement,
you must make a decision about your SDCERA retirement
contributions and interest earned. When you prepare to terminate
employment, be certain to coordinate your termination date
with your department payroll representative and verify that
SDCERA has your correct address. Use this fact sheet to help you
understand your options as a vested or nonvested member.
Vested and nonvested members
You are vested when you have five years of SDCERA service credit
or a combination of SDCERA and reciprocal service credit. If you
terminate employment with less than five years of service credit,
you are a nonvested member. See below to determine the options
available to you as a vested or nonvested member.
If you do not make a
decision about your
account when you
terminate, you will
automatically be
placed in deferred
membership status.
1Collect a retirement benefit (vested members only)
If you are eligible to retire, you may choose to begin
receiving your monthly retirement benefit. Generally,
members are eligible to retire at age 50 (age 55 for
General, Tier B members) with 10 or more years
of SDCERA/reciprocal service credit. You may also
retire regardless of your age with 30 years of service
credit (General members) or 20 years of service credit
(Safety members).
If you are vested, but do not have 10 years of service
credit, you may retire with a benefit based on your years
of SDCERA service credit, when you would have had
10 years of service credit had you remained working.
Your retirement benefits do not automatically begin when
you become eligible to retire. You must contact SDCERA
prior to your retirement date to request a service retirement
application. The application must be completed and
the necessary forms submitted to SDCERA before your
retirement will be processed.
2275 Rio Bonito Way, Suite 200 • San Diego, CA 92108 Call Center 619.515.6800 or 888.4.SDCERA www.sdcera.org twitter.com/sdcera

2Become a deferred member
You may leave your accumulated retirement
contributions on deposit with SDCERA.
Interest on your contributions will be credited
twice each year at a rate determined by the
Board of Retirement. Your total contributions
and earned interest will be recorded on the
member statement you receive annually.
Any future service credit earned with
SDCERA or in a reciprocal retirement
system will count toward meeting vesting and
retirement eligibility requirements as long
as you leave your contributions on deposit
with all systems, do not have overlapping
service, and (with limited exception) retire
simultaneously from all reciprocal systems.
You may choose to withdraw your funds at
any time.
If vested, your retirement benefit will be paid
in the future, usually when you meet the
eligibility criteria and choose to retire.
The Internal Revenue Service limits the
ability to remain in deferred membership
status after the age of 70 ½. SDCERA will
contact you if this situation affects you.
4
Request a refund
You may withdraw your accumulated
retirement contributions, plus interest. You
may request a withdrawal and roll over all
or a portion of the distribution to an IRA
or another employer’s qualified plan that
accepts rollovers. Be aware that when you
are vested and receive a refund of your
SDCERA contribution account (or close
an account with a zero balance) you lose
your right to receive a monthly retirement
benefit at a later date and may also incur
tax penalties.
If you do not make a decision about your account
when you terminate, you will automatically be
placed in deferred membership status.
Returning to active membership
If you are temporarily laid off and reinstated
within one year, it is not considered a break in
service. Therefore, if you return within one year of
separation and redeposit withdrawn contributions
within one month, your service credit will
be restored with the earlier entry age used to
determine your contribution rate.
3
Establish reciprocity
You are eligible to establish full reciprocity
if you leave your accumulated retirement
contributions on deposit with SDCERA and
become a member of a reciprocal retirement
system within six months of leaving active
SDCERA membership. If you become
a member of a reciprocal system after
six months has passed, you may be eligible for
limited reciprocity. Any future service credit
earned in reciprocal retirement systems will
count toward meeting SDCERA retirement
eligibility requirements as long as you leave
your contributions on deposit with all
systems, do not have overlapping service, and
(with limited exception) retire simultaneously
from all reciprocal systems. Read more in the
Reciprocity fact sheet available from SDCERA.
If you elect a refund but do not meet the
requirements in the previous paragraph, upon
return to service and SDCERA membership,
you may still elect to redeposit withdrawn
contributions to receive service credit for your
previous service; however, your current age will
be used to determine your contribution rate. Read
more in the Purchasing Service Credit fact sheet
available at www.sdcera.org or from SDCERA.
If you are a deferred member and are rehired in
a position which qualifies for active SDCERA
membership, you will retain your original
membership entry age for determination of your
member contribution rate, and your years of
service credit will be restored.
2275 Rio Bonito Way, Suite 200 • San Diego, CA 92108 Call Center 619.515.6800 or 888.4.SDCERA www.sdcera.org twitter.com/sdcera

SDCERA library
of publications
Service credit purchases
If you terminate employment before completing a service credit purchase
through payroll deduction, the following options are available:
Booklets
Disability Retirement
Dividing Community
Property
Type of purchase
Sick leave or family
medical leave
Service prior to
membership
Prior public agency
Redeposit of
withdrawn
contributions
Options
You can make a lump-sum
payment prior to your termination
date to pay off the contract and
receive service credit for the entire
period of time purchased.
In the absence of a lump-sum
payment, you will receive
partial service credit based on
the payments made through
payroll deduction.
You can make a lump-sum
payment prior to your termination
date to pay off the contract and
receive service credit for the entire
period of time purchased.
In the absence of a lump-sum
payment, no partial service credit
can be credited.
Health Insurance Plans
for Retired Members
Retirement Plan
Survivor and Beneficiary
Information
Fact Sheets
Considerations after
Termination
Considerations before
Purchasing Service Credit
Deferred Membership
Disability Retirement
Earning Service Credit
Health Insurance Allowance
Health Insurance Plans
Health Insurance
Reimbursement Program
Medicare Information for
SDCERA-sponsored
Health Plans
Purchasing Service Credit
Reciprocity
Refunds
Retirement Benefit Options
Retirement Plan Summary
Rollover/Transfer for
Purchasing Service Credit
Supplemental Benefit
Allowance
Taxation of Retirement
Benefit Payments
Working after Retirement
2275 Rio Bonito Way, Suite 200 • San Diego, CA 92108 Call Center 619.515.6800 or 888.4.SDCERA www.sdcera.org twitter.com/sdcera

This material is available in alternative formats
upon request. Please contact 619.515.6800.
This fact sheet provides disclosure of certain terms and conditions of SDCERA membership and benefits available to
members. It is designed to give you this information as simply and accurately as possible as of the date of issuance of this fact
sheet. SDCERA is governed by the County Employees Retirement Law of 1937 (Government Code Section 31450 et seq.) as
it has been adopted and implemented by the San Diego County Board of Supervisors and the SDCERA Board of Retirement.
If there is any inconsistency between this fact sheet and the governing law, the law will govern. Decisions relating to the plan
will be made after reference to the statutes and any resolutions, regulations and policies governing administration of SDCERA
as they exist at the same time of the decisions.
Rev. 10/2012
SAN DIEGO COUNTY EMPLOYEES RETIREMENT ASSOCIATION
2275 RIO BONITO WAY, SUITE 200
SAN DIEGO, CA 92108-1685