Tier 5 - Fresno County

Report
Fresno County Employees’ Retirement Association
Orientation Presentation
Location: 1111 H Street Fresno, CA 93721
Phone: (559) 457-0681
Stop Mail #: 40
Web Address: http://www.fcera.org
Intranet Address: E-services  Department Sites 
Retirement Association.
Revised 1/2/13
Type of Plan

Defined Benefit
– Lifetime benefit – defined by laws adopted
by the County and type of membership,
age at retirement, years of service and final
compensation.
– Benefit is not based on contributions made
to the plan
Membership

Membership is mandatory if working 50% or
more of full time.
– If 60 years of age or older at the time you
are hired you will contribute unless you elect
to not participate
– Membership is optional for elected officials
– Once election is made it is IRREVOCABLE
Types of Membership

SAFETY-
Deputy Sheriffs
Correctional Officers
Criminologists
Criminal Investigators
District Attorney Investigators

GENERAL- Anyone who is not a Safety
Member.
Level of Membership

Tier 1 (1 year Final Compensation Average)
– General - offers 2.5% @ 55 (GCS 31676.14 + 31627)
maximum of 3.2733% @ 60
– Safety

- offers 2.5% @ 50 (GCS 31664 + 31627)
maximum of 3.2748% @ 55
Tier 2 (1 year Final Compensation Average)
– General - offers 2.0% @ 55 (GCS 31676.16)
maximum of 2.4180% @ 63
– Safety
- offers 2.2902% @ 50 (GCS 31664.2)
maximum of 3.0% @ 55
Level of Membership (continued)
 Tier 3 (3 year Final Compensation Average)
– General - offers 2.0% @ 55 (GCS 31676.15)
maximum of 3.1336% @ 65
- Safety – Not offered
Tier 4 (3 year Final Compensation Average)
- General – offers 1.67% @ 57.5 (GCS 31676.1)
maximum of 2.43% @ 65
- Safety – offers 2.0% @ 50 (GCS 31664)
maximum of 2.62% @ 55
Level of Membership (continued)

Tier 5 (3 year Final Compensation Average)
– General – offers 2.0% @ 62 (GCS 7522.20)
maximum of 2.5% @ 67
– Safety –
offers 2.5% @ 55 (GCS 7522.25 (d))
maximum of 2.7% @ 57
Level of Membership (continued)

Final compensation average used in retirement calculation:
– Tier 1 and Tier 2 – one year final compensation average
– Tier 3 and Tier 4 - three individual years final compensation
average
– Tier 5 - consecutive three year final compensation average

Annual Cost of Living Adjustment:
– Tiers 1, 2 and 3 - 0% - 3%
– Tiers 4 and 5 - 0%

The County of Fresno will provide contribution rates for all Tiers
effective for this fiscal year

Contributions may change annually

FCERA’s web site has a benefit calculator
– http://www.fcera.org (internet) or E-services  Department
Sites  Retirement Association (intranet)
Contributions

Tiers 1, 2, 3 and 4 – Are deducted from your bi-weekly salary based on
your salary and the age you enter the retirement
system. Your contributions can change based on
salary changes or actuarial valuations, which may
cause contribution rate changes
– Your age (for contribution calculations) does not
change as long as you are continuously employed
with the County of Fresno

Tier 5 – Are deducted from your bi-weekly salary based on
a flat rate. Your contributions can change based
on salary changes or actuarial valuations, which
may cause contribution rate changes
Contributions (continued)

Tiers 1, 2, 3, 4 and 5 – Deducted the 1st day of the pay period
following your date of hire
– Tax deferred
– Employer contributes to the retirement system
on the member’s behalf when member retires
– Interest is credited twice per year on June 30
& December 31
What is reciprocity?

Reciprocity is the relationship that exists
between:
– Public Employees Retirement System (PERS)
– 20 County Retirement Systems in California governed
by the County Employees Retirement Law of 1937
– State Teachers Retirement System (STRS)
– Judges Retirement System
– Other Public agencies with a contracted agreement
with PERS (Example: City of Fresno)
Reciprocity is designed to protect your earned retirement
benefits when you transfer from one public agency to another.
It is intended to encourage career public service.
What are the requirements to
establish reciprocity?




Terminate your employment covered by another
retirement system that has a reciprocal relationship
with FCERA
Leave your contributions on deposit with the
reciprocal agency
Establish membership with FCERA within 6 months
of your termination from reciprocal agency
Notify FCERA that you wish to establish reciprocity
Reciprocity is available upon becoming a member of FCERA
as well as when you are leaving Fresno County Employment
and going to a reciprocal agency
What benefits do I accrue from
establishing reciprocity?



Tiers 1, 2, 3 and 4 –
– FCERA will use your entry age from the reciprocal agency to
determine your contribution rate
Tier 5 –
– Your retirement contribution rates are based on a flat rate.
Tiers 1, 2, 3, 4 and 5 –
– Members who establish reciprocity after having worked for the
reciprocal agency on or prior to 12/31/2012 will be placed into
Tier IV
– Your service credit from other reciprocal agencies will be added
to service credit from FCERA to determine eligibility for
benefits under all systems for purposes of vesting (not for
determining all benefits)
– Your highest final compensation average from FCERA or the
reciprocal agency is used to determine your benefit from both
agencies
– You must retire concurrently from all systems in order to
receive the benefits of reciprocity
Consequences of Breaking
Reciprocity
Once reciprocity is established there are
consequences if reciprocity is broken


Years of eligibility service for retirement may
be impacted
Entry age for contributions may change
– Tiers 1, 2, 3 and 4 –
• Age at which contributions are calculated may be
impacted
– Tier 5 –
• Contributions are not age based
Buy Back of Fresno County Service

Service credit that may be purchased:
– Extra help
– Part time service - less than 50% of full time
– New hire period - period between hire date and FCERA membership
– Unpaid medical leave - maximum one year of each leave
– Unpaid military leave - all time served while a County employee
– Redeposit previously withdrawn contributions - prior to retirement.
(However, return to membership with a FCERA plan sponsor within
90 days and redeposit withdrawn contributions within 180 days of
your termination date with a FCERA plan sponsor will retain your
original age.)

You must complete a Request for Service Credit Calculation form

Purchases in progress at termination may be purchased before your date
of retirement provided your funds have remained in the plan

Members whose funds remain in the plan after termination can purchase
available service prior to retirement
Death Benefits Before Retirement


A death benefit is payable to your beneficiary upon
your death as an active member before retirement
The basic death benefit consists of:
Your
accumulated
contributions


+
Interest
+
(
Last 12 months of
pensionable pay
x
One month for every
year of service (not
to exceed 6 months
pay)
If you have completed at least 5 years of service,
your surviving spouse or dependent children may
elect to receive, in lieu of the basic death benefits, a
continuing benefit
Deferred members – receive lump sum of member’s
contributions plus associated interest
)
Required Documents Prior to Retirement

Birth Certificates
– Member
– Beneficiary

Marriage Certificate – California is a community
property state. Current spouse is your legal beneficiary
at your death. Minor child – beneficiary after spouse

Court Filed Divorce Documents - (status only – not
acceptable)

Reminder: To change your beneficiary for any reason,
you must complete a FCERA Beneficiary Designation
Form and provide necessary documents for the new
beneficiary

FCERA and Employee Benefits do not share
information. Provide changes to both depts.
Retirement Qualifications –
You are eligible for service retirement benefits if:
 You terminate your employment
 Leave your contributions and interest with the retirement plan

Tiers 1, 2, 3, and 4 -

Have completed at least 10 years of service and are age 50+
You are a General Member with 30 years of service credit
regardless of age
You are a General Member and age 70 regardless of years of
service credit
You are a Safety Member with 20 years of service credit
regardless of age




Tier 5 –

Have completed at least 5 years of service
– General, minimum retirement age - 52
– Safety, minimum retirement age - 50
Deferred Member



To be eligible to defer your retirement benefits to a
later date, you must have at least 5 years of service
(Vested)
Tiers 1, 2, 3 and 4 –
– If you do not have 5 years of service, you may
leave your funds with FCERA in an interest
bearing account until you are ready to withdraw
your funds or General members reach age 70 and
take a retirement benefit
Tier 5 –
– You must have 5 years of service
(Vested) to retire at a later date
Withdrawal of Contributions


You may not borrow your contributions for any
reason. As long as you are employed, including extra
help, you cannot withdraw any of your contributions
If you terminate employment, you need to file a
Disposition of Member Retirement Contribution
form with our office, indicating your election for the
disposition of your funds
Withdrawal of Contributions (continued)



You only receive your contributions and
the interest associated with them
You do not receive the contributions
made by the employer
You will only receive the employer
portion if you stay long enough to draw
a monthly retirement benefit
Withdrawal of Contributions (continued)

If you choose to withdraw your contributions,
when you terminate your employment, there
will be a MANDATORY 20% Federal Tax
withholding taken from your check

If you Roll Over your contributions to another
tax deferred account, there will not be a 20%
withholding
Smith
John
111-11-1111
Smith
1111 H. Street
John
111-11-1111
Fresno
CA
93721
Smith
John
1111 H. Street
111-11-1111
Fresno
11/01/2005
CA
93721
Retirement Association
Retirement Coordinator
Smith
John
1111 H. Street
111-11-1111
Fresno
11/01/2005
CA
93721
Retirement Association
Retirement Coordinator
Smith
John
1111 H. Street
111-11-1111
Fresno
11/01/2005
CA
93721
Retirement Association
Retirement Coordinator
Smith
John
1111 H. Street
111-11-1111
Fresno
11/01/2005
03
01
1977
CA
93721
Retirement Association
Retirement Coordinator
Smith
John
1111 H. Street
111-11-1111
Fresno
11/01/2005
03
01
1977
CA
93721
Retirement Association
Retirement Coordinator
Smith
Mary
Smith
Mary
IRC 415 Notice



IRS code that limits the amount of benefits a
Public Retirement Plan may pay an individual
in one year
ie: Age 62-65, maximum annual limit is
$205,000 (general)
ie: Age 60-65, maximum annual limit is
$205,000 (safety)
Any Questions?

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