Your retirement benefit is determined by your final average compensation (FAC), retirement plan, service credit, and age at retirement.
Final Average Compensation Periods
Compensation is the pay you receive while you are working or on approved leave. Pensionable compensation is the portion of your pay that consists of pay items determined by the Board of Retirement to be eligible for calculating contributions and your retirement benefit.
By default, LACERA determines your FAC based on your highest pensionable scheduled compensation received during a specific consecutive-month period of service (12 or 36 months, depending on your plan). The scheduled amount is your monthly regular base pay (what you receive if you have no absences without pay).
If you are a reciprocal member, LACERA may use your highest FAC for your reciprocal service if that amount is higher.
FAC periods by plan:
- General Plans A, B, C, D, and Safety A and B: Any 12-consecutive-month period of service
- General Plan E: Any three 12-consecutive-month periods of service
- General Plan G and Safety C: Any 36-consecutive-month period of service
While the period with the highest total scheduled compensation is often the last recent 12- or 36-month period during the membership, LACERA checks every possible consecutive-month period to ensure that the period with the highest total is identified.
Example: 12-Month FAC Calculation (General Plans A, B, C, D, and Safety A and B)
A member joined LACERA on April 1, 2000 and retired on March 30, 2025. Their highest 12-month period of consecutive earnings was their last year of employment, so their FAC period is calculated using scheduled earnings for those pay periods, shown below.
| 12-Month Highest Earnings Period | Compensation for Highest 12-Month Period | Monthly FAC (Compensation ÷ 12) |
|---|---|---|
| 4/15/2024 to 3/31/2025 | $100,000 | $8,333.33 |
Example: 36-Month FAC Calculation (General Plans E,* G, and Safety C)
A LACERA member retires on December 17, 2025. Their highest 36-month period of earnings is the last three years of employment, so their FAC period is calculated using scheduled earnings for those pay periods, shown below.
| 36-Month Highest Earnings Period | Total Compensation for the 36-Month Period | Monthly FAC (Total Compensation ÷ 36) |
|---|---|---|
| 1/15/2023 to 12/31/2025 | $230,000 | $6,388.89 |
*For Plan E members, the 36-month calculation method is the same as General Plan G and Safety C, except that the three years can be any three 12-consecutive-month periods of service, added together for the total compensation amount.
Calculating Your Retirement Benefit Estimate
Log in to My LACERA any time during your career to use the retirement benefit estimate (RBE) calculator. The RBE calculator provides your current highest pensionable scheduled earnings, which you can use to estimate your allowance under different date and service credit scenarios to see how it will affect your projected benefit.
Pensionable pay and leave items depend on your plan and are described in further detail below. High-earning members should also be aware of state and federal compensation limits.
Pensionable/Nonpensionable Pay Items
Certain pay items may be included in or excluded from your final compensation in determining your retirement allowance. You can check the pay items for your plan in the appropriate chart, linked below.
- General Plan G and Safety Plan C: Use the PEPRA Pay Codes Chart.
- General Plans A, B, C, D, and E, and Safety Plans A and B: Use the CERL Pay Codes Chart.
If you were hired on or before December 31, 1995, you may be eligible to include a portion of County cafeteria plan contributions as compensation earnable (pensionable earnings).
Selling Back Pensionable Items
Selling back or receiving payment for the following items may help enhance your average monthly salary when you retire, as they are used in calculating your allowance.
- Sick leave
- Vacation/MegaFlex nonelective leave
- Holiday hours
Sick Leave Buyback
Under County rules, sick leave not used during the calendar year or other specified period may be paid to the employee while working. (In other words, the County may “buy back” your unused sick days and compensate you for that unused leave.)
Excess Vacation or MegaFlex Non-Elective Leave Hours
Vacation and MegaFlex non-elective leave hours in excess of the carryover threshold may be paid out to the employee annually while working.
Holiday Hours
Holiday hours may be paid out to certain eligible employees, pursuant to MOU provisions. Overtime and termination pay are not included in your final compensation.
Utilizing the buyback provision or receiving payment for unused or excess leave hours can boost your retirement dollar; however, specifics on buyback vary. Check with your Department for information pertaining to your individual situation.