Shaping Our Story: It is more than Just Numbers Presenters: Robert Kinsler - Public Relations Analyst Orange County Employees Retirement System Richard W. “Rich” Goss - Administrator California Association of Public Retirement Systems Randy Conner - President Churchill Management Group

CALIFORNIA’S PUBLIC RETIREMENT SYSTEMS RICHARD W. GOSS CALIFORNIA ASSOCIATION OF PUBLIC RETIREMENT SYSTEMS

CalPERS - Over $200 Billion in assets –700,000 General Members –300,000 General Retirees –2,600 Contract Agencies 20 County Retirement Systems –“1937 Act” - $95 Billion in Assets –215, 000 General Members –118,000 General Retirees

ALAMEDA CONTRA COSTA FRESNO IMPERIAL KERN LOS ANGELES MARIN MENDOCINO MERCED ORANGE SACRAMENTO SAN BERNARDINO SAN DIEGO SAN JOAQUIN SAN MATEO SANTA BARBARA SONOMA STANISLAUS TULARE VENTURA ’37 Act Counties

1937 ACT & CalPERS – Governed by Sections of the Government Code Boards’ Fiduciary Duties specified in State Constitution

2 Other Counties –San Francisco – Governed by City Charter –San Luis Obispo – Other section of Gov’t Code –Also Cities and Districts –Also Teachers and University of California

“Defined Benefit” Pension Plans –Characterized by: –Formula based on %, Service, Salary, Age –Disability Retirements –Continuance Benefits –Death Benefits –Cost-of-Living Increases

RECIPROCITY –For employees who move between certain public systems –Benefits: Establish age at entry (some systems) Combined service used to determine eligibility Highest earnings used regardless in which system earned

RECIPROCITY –Issues/Problems –No overlapping service –Confusion with Disability Retirement Application –YOU must notify retirement systems (both) –Smoother between CalPERS contract agencies

Issues we face –Proper funding –National movement to terminate DB plans –Accounting Regulation Changes –Taxpayers have lost their DB plans

California Public Retirement System Contact Information CalPERSwww.calpers.ca.govwww.calpers.ca.gov Alameda County Employees Retirement Association Contra Costa County Employees Retirement Association Fresno County Employees Retirement Associationwww.fcera.orgwww.fcera.org Imperial County Employees Retirement System Kern County Employees Retirement Associationwww.kcera.orgwww.kcera.org Los Angeles County Employees Retirement Associationwww.lacera.comwww.lacera.com Marin County Employees Retirement Associationwww.mcera.orgwww.mcera.org Mendocino County Employees Retirement Associationwww.co.mendocino.ca.us/retirementwww.co.mendocino.ca.us/retirement Merced County Employees Retirement Association Orange County Employees Retirement Systemwww.ocers.orgwww.ocers.org

California Public Retirement System Contact Information Sacramento County Employees Retirement Systemwww.scers.orgwww.scers.org San Bernardino County Employees Retirement Associationsbcera.org San Diego County Employees Retirement Associationwww.sdcera.org. San Francisco City and County Emps. Retirement Systemwww.sfgov.org/site/sfers_index.aspwww.sfgov.org/site/sfers_index.asp San Joaquin County Employees Retirement Associationwww.sjcera.orgwww.sjcera.org San Luis Obispo County Pension Trust San Mateo County Employees Retirement Associationwww.samcera.orgwww.samcera.org Santa Barbara County Employees Retirement Systemwww.sbcers.orgwww.sbcers.org Sonoma County Employees Retirement Associationwww.scretire.comwww.scretire.com Stanislaus County Employees Retirement Associationwww.stancera.orgwww.stancera.org Tulare County Employees Retirement Associationwww.tcera.orgwww.tcera.org Ventura County Employees Retirement Associationwww.ventura.org/vcerawww.ventura.org/vcera

Orange County Employees Retirement System Robert Kinsler Retirement Benefits Presentation

Introduction The purpose of this presentation is to familiarize members with defined benefit plans such as OCERS. We hope to provide the tools necessary to ensure that the transition from active employment to retirement is as uncomplicated and stress free as possible.

Topics of Discussion Retirement Basics Plan Types and Formulas Eligibility for Retirement Options and Beneficiaries Disability Retirement Application Process Life as a Retiree Questions and Answers

Retirement Benefits are Calculated Using 4 Factors Age at Retirement Years of Service Credit* Final Average Salary –Earnable salary plus eligible pay items Benefit Formula –2.7% at 55 etc… *Reciprocity – Incoming/Outgoing

Service Credit Based on actual hours a member is paid and contributions received by OCERS Not based on calendar years To increase years of service you may: Redeposit previously withdrawn OCERS service or; Purchase service credits, when eligible: –Medical leave of absence – up to 1 year –Excluded or extra help service –Public service

Base Salary and Wages –Premium Pay Items Bilingual Premium Pay On Call Pay PM or Shift differential –Other items of compensation earned and cashable such as leave payoffs, pursuant to the applicable MOU Sick Pay – –County Tier 1~ employees hired prior to July 15, 1977 –Outside agencies ~ pursuant to applicable MOU or agreement Vacation/Annual Leave Holiday Pay Final Average Salary

Plan Types (Benefit Formulas) –Plan A: (General Tier 1) 2% at 57 –Plan B: (General Tier 2) % at 57.5 –Plan C: (Safety Tier 1) 2% at 50 –Plan D: (Safety Tier 2) 2% at 50 –Plan E: (Safety Tier 1) 3% at 50 –Plan F: (Safety Tier 2) 3% at 50 –Plan G: (General Tier 1) 2.5% at 55 –Plan H: (General Tier 2) 2.5% at 55 –Plan I: (General Tier 1) 2.7% at 55 –Plan J: (General Tier 2) 2.7% at 55 –Plan K: (General Tier 1) 3% at 60 –Plan L: (General Tier 2) 3% at 60 –Plan M: (General Tier 1) 2% at 55 –Plan N: (General Tier 2) 2% at 55

Eligibility for Retirement Age 50, with 10 years of service credit* or more 20 years of service credit or more, regardless of age for Safety Members 30 years of service credit or more, regardless of age for General Members Age 70 or older, regardless of years of service credit *Reciprocal service counts towards the minimum eligibility requirements

Benefit Payment Options Unmodified Option: –Pays highest possible benefit –60% continuance to eligible spouse/domestic partner or eligible child An eligible spouse/domestic partner = a spouse/domestic partner that you are married to at least 1 year prior to retirement or married at least 2 years prior to death and the spouse/domestic partner is at least age 55 at the time of the member’s death. An eligible child = a child that is under age 18 or is unmarried and a full-time student (up to the age of 22).

Option 1: –Reduced monthly allowance –Lump sum payment of unused contributions to designated beneficiary Option 2: –Reduced monthly allowance –100% continuance to designated beneficiary Option 3: –Reduced monthly allowance –50% continuance to designated beneficiary Benefit Payment Options continued…

Option 4: –Reduced monthly allowance –Allows for multiple designated beneficiaries –Must be approved by the Board of Retirement ALL BENEFIT PAYMENT ELECTIONS ARE IRREVOCABLE! Benefit Payment Options continued…

Survivor Benefits for Active Employees If the member was eligible for Service retirement at the time of death = 60% of a service retirement allowance paid to the eligible spouse/domestic partner or eligible child (must be designated beneficiary). If the member was eligible for a Non-Service Disability = 60% of a non-service connected disability retirement allowance paid to the eligible spouse/domestic partner or eligible child (does not need to be designated beneficiary). Return of member contributions and interest, plus one month of salary for every year of service (maximum of six months) paid to the designated beneficiary.

Disability Retirement Service Connected Disability –Must be permanently incapacitated from performing the usual and customary duties of current position Illness or injury must be caused by job Non-Service Connected Disability –Must be permanently incapacitated from performing the usual and customary duties of current position Illness or injury not job-related Must have five (5) years of service credit

Appointment with OCERS or electronic filing via the MIC –60 days in advance Member’s birth certificate –Valid Passport Spouse/Domestic partner’s birth certificate –Valid Passport Marriage License or Domestic Partnership certificate Electronic Deposit (EFT) form ~ mandatory Tax Withholding Election form –California only Retiree Application Process

Life as a Retiree Retirement allowance is paid monthly ~ in arrears. COLA adjustment effective April 1 ~ paid in May. Burial Benefit ~ $1000 paid to designated beneficiary. 1099’s Returning to work –Extra help vs. regular full-time

Member Information Center Allows members to gain access to their OCERS information –24 hours a day, 7 days a week –Beneficiary information and changes –Employment history and plan type –Interactive Benefit Estimator –Balance statement Enroll at

Questions ???

OCERS Contact Information Address: 2223 Wellington Ave. Santa Ana, CA Information: (714) Toll Free Number: (888) Web Address:

Shaping Our Story: It is more than Just Numbers Presenters: Randy Conner - President Churchill Management Group