Carlos Barrios Section Head, Outreach Leaving County Service Workshop
Presentation Covers… Who Should Attend Deferring Retirement Reciprocity Withdrawing Retirement Returning to Service
Who should attend? Employees who received notice they will be laid off, have recently been laid off, or are terminating Employees who are members of LACERA Groups of 8 or more
Deferring Retirement Vested member terminates County service and leaves his or her Plan contributions on deposit with LACERA. Vesting requirements Combined Plans: vesting requirements Leaving contributions Interest Mandatory distribution on April 1 of the year following the year the member reaches age 70 ½
Reciprocity What is reciprocity? Combines service to help meet o Vesting requirements o Minimum retirement eligibility requirements Highest salary between agencies Requirements o 6 months or less o Concurrent retirement
Withdrawal Timeline for Contributory Members Withdrawal is paid days after all documents are received o Termination date o Withdrawal packet mailed within 30 days o Withdrawal application o Rollover/Transfer Certification form o Waiver of benefits Lifetime pension Right to apply for Disability Health insurance benefits Reciprocity
Withdrawal & Taxes Distribution o 20% federal withholdings o 10% federal penalty if under age 55 o 2% California state withholdings o 2.5% state penalty if under 55
Withdrawal & Taxes Rollover o Avoids tax penalties o No withholdings o Continues as a retirement investment
Retirement Eligibility requirements Requirements vary based on Plan(s) o Single Plan o Two Plans o Up to Three Plans
Return to Service Vested or Non-vested Choice in Plans based on former Plan Withdrew or left contributions Redeposit Re-employment within 1 year after layoff o Contribution age rate returns to pre-layoff rate if they did not withdraw or if they redeposit withdrawal plus interest
Contact LACERA 300 N. Lake Ave., Pasadena, CA HR Pros call ext to schedule a jobsite workshop Contact info for employees Phone: Web site: lacera.com