Compensation and Benefit Limits

State and federal laws limit the annual benefit that an individual may receive or annual compensation that may be used to calculate retirement benefits, depending on date of LACERA membership.

Internal Revenue Code Section 415(b) applies to some General Plan B and C members as described under Benefit Limits below.

Internal Revenue Code Section 401(a)(17) applies to some General Plan D and E members, and PEPRA limits apply to General Plan G and Safety Plan C members, as described under Compensation Limits below. 

Benefit Limits

Those with membership dates on or after January 1, 1990 are subject to federal Internal Revenue Code Section 415(b) limits on the amount they can receive annually from LACERA's defined benefit plan. However, LACERA benefits are promised under the County Employees Retirement Law of 1937. Members subject to 415(b) limits are covered by the County-funded and administered Replacement Benefit Plan (RB Plan) and will receive their full benefit.

Compensation Limits

General Plan D and E members who first entered LACERA membership on or after July 1, 1996 are subject to a federally mandated annual compensation limit for calculating retirement benefits under Internal Revenue Code Section 401(a)(17).

LACERA General Plan G and Safety Plan C members are subject to a state-mandated annual compensation limit under PEPRA for calculating retirement benefits.