Termination Due to Layoff Fact sheet for active and deferred ... - 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separation and redeposit withdrawn contributions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