Welcome
About Your LACERA Defined Benefit Plan
All LACERA retirement plans are defined benefit plans; as such they promise to pay a specified monthly benefit at retirement. (See Active Service > More About Your Defined Benefit Plan.) The monthly allowance you will receive at retirement under Plan E is a lifetime benefit, payable every month for the rest of your life.*
The funds in your defined benefit retirement plan are invested by LACERA. You do not bear the risk of adverse investment performance. Benefits granted under Plan E are determined solely by the provisions set forth in the Plan; they are not affected by market volatility. This differs from a defined contribution plan such as a 457 or 401(k) plan, in which you make the investment decisions and bear the associated risks. In those types of plans, your benefit payments stop when the money is exhausted.
Your LACERA Plan E retirement benefits will not run out; you cannot outlive them.
*Certain eligibility rules apply.
Three Factors Determine Your Retirement Benefits
The specifics of your retirement benefits are determined by your age at retirement, amount of service credit, and final compensation — in accordance with the provisions of your Plan. Any Plan E member who meets the minimum age and service requirements may retire for service and receive a monthly lifetime retirement allowance.
Plan E is a non-contributory plan. That means you do not contribute to it; only the County (or outside district) contributes to it. Rates for the County’s contributions are recommended by LACERA’s actuary.*
*Plan E contributions made by the County or outside district are credited to the Employer Reserve Account and are not refundable to you or to your employer.
Summary of Plan E Provisions - The Basics
- Contributions
- Member does not make contributions
- Employer makes contributions
- Vesting
- After ten years of County (or combined County and reciprocal system) service credit
- Retirement Eligibility
- Age 55 with 10 years of County (or combined County and reciprocal system) service credit
- Age 70, regardless of years of service credit
- Final Compensation
UPDATE: 9-13-13 - Based on highest monthly average of compensation earnable during any three 12-month periods of service, whether or not consecutive
- Maximum Retirement Allowance
- Equal to 80 percent of final compensation*
*LACERA plans are subject to benefit and compensation limits under Internal Revenue Codes §§ 401(a)(17) and 415(b) and PEPRA §7522.10 as applicable.
Benefits Enhancements*
- Purchasable Service Credit
- Additional Retirement Credit (ARC) purchased prior to January 1, 2013
- May not purchase County and non-County employment prior to LACERA membership
- Reciprocity
- Protects retirement benefits when employees transfer between reciprocal public agencies
- Retiree Healthcare
- Eligible for LACERA-administered retiree healthcare benefits
- Cost-of-Living
- Retirement allowance eligible for cost-of-living (COLA) increases
*Certain eligibility requirements apply.
Disability, Death, and Survivor Provisions
- Disability Benefits
- LACERA does not pay disability benefits if an active or vested, deferred member becomes disabled
- Death Benefits
- LACERA does not pay death benefits if a member dies in active service
- LACERA pays $5,000 death/burial benefit when a retired member dies, , unless they were later employed by another system under the County Employees Retirement Law (CERL).
- Continuing Benefits
- Upon the death of a retired member, LACERA pays up to 100 percent of the member’s retirement allowance to an eligible survivor or eligible designated beneficiary*
*Certain eligibility conditions and restrictions apply.
Benefits Provided by Los Angeles County
- Retiree Healthcare Subsidy
- County subsidizes retiree medical/dental insurance based on a minimum of 10 years of service credit
- Disability Benefits
- County pays disability benefits in the event an active member becomes disabled*
- Death Benefits
- County pays death benefit in the event an active member dies
- Life Insurance
- County provides $10,000 life insurance benefit for active members who die in service**
*Certain eligibility conditions and restrictions apply.
**Eligible employees may purchase additional coverage. County-sponsored life and disability insurance benefits and options vary for MegaFlex participants. LACERA does not administer these benefits; contact your Department for details on County-sponsored and/or administered insurance benefits.
When Are You Eligible for Retirement?
Members of LACERA Plan E are eligible to retire when they meet either of the following conditions:
- At age 55 with 10 or more years of County (or combined County and reciprocal system) service credit
- At age 70, regardless of years of service credit
A vested member of Plan E who terminated County service prior to retirement (deferred) is eligible to receive a retirement allowance upon fulfilling the minimum age and service requirements.
Advantage of Remaining in Active Service: Ages 55-65
Between the ages of 55 and 65, each year on your birthday, the amount of the allowance you will be entitled to receive upon retirement increases. In other words, the older you are when you retire, the greater the monthly allowance you will receive. (There is no additional age benefit after age 65.)
Your retirement allowance is based on a percentage of your final compensation, and age is one of the factors used to determine that percentage. Between the ages of 55 and 65, on every birthday, that percentage increases.
| Age at Retirement | 62 yrs | 63 yrs | 64 yrs | 65 yrs |
|---|---|---|---|---|
| Service Credit | 20 yrs. | 21 yrs. | 22 yrs. | 23 yrs. |
| Percentage of Final Compensation | 29.31% | 34.07% | 39.59% | 46.00% |
| Monthly Allowance | $1,466 | $1,704 | $1,980 | $2,300 |