Transfers to Plan D
Some Plan E members may decide it is to their advantage to transfer to Plan D. LACERA offers two methods of transferring from Plan E to Plan D: an Open Window Plan Transfer (OWPT) or Prospective Plan Transfer (PPT).
An OWPT requires you to purchase all your previous years of Plan E service credit before your transfer becomes effective.
A PPT is a simple plan change; you switch from Plan E to Plan D and begin making the monthly contributions. You have the option, but are not required, to convert some or all of your Plan E service credit to Plan D.
See a comparison of Open Window and Prospective Plan Transfers below.
Should You Transfer Plans?
There are many factors to consider before initiating a plan transfer, so it is wise to compare the benefits and costs prior to completing your application. To evaluate if a transfer will be beneficial:
- Review the basic provisions for Plan D and Plan E, and refer to the Plan D and E Comparison Chart
- Log in to My LACERA to compare your retirement allowance as a member of Plan D or Plan E and create an estimate of the cost of a plan transfer contract.
- Contact us to discuss your options with a Retirement Benefits Specialist.
Open Window and Prospective Plan Transfers Comparison
- OPEN WINDOW PLAN TRANSFER
- Contributions calculated at a lower rate, based on your entry age to LACERA.
- Must purchase and convert credit for all Plan E service to Plan D. (Certain exceptions apply.)
- The cost to purchase and convert Plan E service is based on your LACERA entry age.
- Contract payment periods from one year up to 10 years.
- You remain a Plan E member until your transfer is completed. Although you begin earning Plan D service credit upon the start of your payroll deductions, you are not entitled to Plan D benefits until your entire transfer contract is paid in full.
- PROSPECTIVE PLAN TRANSFER
- Contributions are calculated at a higher rate, based on your current age.
- May opt to purchase and convert some or all Plan E service credit to Plan D.
- Cost to purchase and convert Plan E service based on your age on the beginning date of the service being purchased.
- Contract payment periods from one year up to 10 years.
- You begin earning Plan D service credit on the effective date of transfer and become eligible for disability/survivor benefits when Plan D service requirements are met.*
* To be eligible to apply for disability retirement, you must have two years of continuous service after your most recent effective date of transfer. (During that two-year period, you must not take a medical leave necessitated by a preexisting condition.) Or, if you had a break in service, you must have earned five years of service credit as an active Plan D member after your most recent effective date of transfer.