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?