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 A or B 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 Plans A and B are determined solely by the provisions set forth in the Plans; 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 A or B 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 (calculated in quarter-years), amount of service credit, and final compensation — in accordance with the provisions of your Plan. Any Plan A or B member who meets the minimum age and service requirements may retire for service and receive a monthly lifetime retirement allowance.
Summary of Provisions in Plans A and B - The Basics
- Contributions
- Member makes contributions through pre-tax payroll deductions*
- Employer makes contributions
- Vesting
- After five years of County (or combined County and reciprocal system) service credit
- Retirement Eligibility
- Age 50 with 10 years of County (or combined County and reciprocal system) service credit
- At least 20 years of County (or combined County and reciprocal system) service credit, regardless of your age
- Final Compensation
- Based on highest monthly average of compensation earnable during any 12-consecutive-month period of service
- Maximum Retirement Allowance
- Equal to 100 percent of final compensation**
*Contributions for benefits resulting from industrial accidents may be made on an after-tax basis.
**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.
Benefit Enhancements*
- Purchasable Service Credit
- Certain County and non-County employment prior to LACERA membership
- Additional Retirement Credit (ARC) purchased prior to January 1, 2013
- 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 pays disability benefits if the Board of Retirement determines an active member has become disabled
- Death Benefits
- LACERA pays 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 an eligible survivor or eligible designated beneficiary*
*Certain eligibility conditions and restrictions apply.
Benefits Provided by Los Angeles County
- Retiree Health Care Subsidy
- County subsidizes retiree medical/dental insurance based on a minimum of ten 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 $2,000 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.
Contributing to Plan A or B
Plan A or B members make semimonthly contributions to the Plan through automatic payroll deductions. Your contribution rate is a percentage of your compensation earnable. That percentage is based on your entry age into LACERA; it remains based on your entry age throughout your career, regardless of how many years you work.
For example, if your official entry age is 30, your contributions will always be based on the age 30 rate.
Although your contribution rate will always be based on your LACERA entry age, it’s important to understand all contribution rate percentages are subject to change as the result of several factors, including periodic negotiations between management and employee groups, interest rate changes set by the Board of Investments, and system actuarial valuations. System valuations, which are performed every three years as prescribed by law, provide the basis for member contribution rate adjustments deemed necessary to properly fund the system.
Employer contributions are funds contributed by the County or outside district, at rates recommended by LACERA’s actuary. Those contributions are credited to the Employer Reserve Account and are not refundable to the member or the employer.
Member contributions are cancelled for Plan A or B safety members who have accrued 30 years of continuous County or reciprocal service.
Member contributions are made through pre-tax payroll deductions, per Internal Revenue Code Section 414(h)(2). That means payment of tax on your contributions is deferred until you retire or terminate service and withdraw your accumulated contributions.
If you terminate County service and withdraw your retirement contributions, federal law requires LACERA to withhold 20 percent in federal income tax.* If you reside in California, you may elect not to have state tax withheld; however, if you do not make a state tax withholding election, we will withhold an additional 2 percent in California state income tax. If you are under age 70.5, you may defer tax by rolling the funds over into an IRA or other qualified retirement plan.
For questions regarding legal or tax matters, consult with a professional advisor; LACERA does not offer legal or tax advice.
*U.S. Government Code Title 26.
When Are You Eligible for Retirement?
Active members of Plans A or B are eligible to retire when they meet one of the following conditions:
- At age 50 with 10 or more years of County (or combined County and reciprocal system) service credit.
- At least 20 years of County (or combined County and reciprocal system) service credit, regardless of your age.
- Mandatory retirement at age 60 applies to safety members of the Sheriff’s Department and Fire Department with hire dates prior to April 1, 1997.
To be exempt from mandatory retirement at age 60, safety members of the Sheriff’s Department or Fire Department hired prior to April 1, 1997 must submit certification by a County physician indicating they are capable of performing their assigned duties in accordance with the standards set forth by their Department. LACERA must receive this certification 30 days before the member’s 60th birthday.
Safety members hired on or after April 1, 1997 are not subject to mandatory retirement.* District Attorney Investigators and lifeguards in L.A. County are exempt from mandatory retirement at age 60 by order of the Federal Court.
Deferred vested members are eligible to retire when they meet any of these conditions:
- At age 50, having reached the date they would have accrued 10 years of County (or combined County and reciprocal system) service credit had they remained in full-time service.
- At any age, having reached the date they would have accrued 20 years of County (or combined County and reciprocal system) service credit had they remained in full-time service.
*Certain exceptions apply; for additional information call 800-786-6464 to speak with a LACERA Retirement Benefits Specialist.
Advantage of Remaining in Active Service: Ages 50-55
Between the ages of 50 and 55, every three months, 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 55.)
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 50 and 55, the percentage increases with each quarter-year (three months) of age you attain.
| Retirement Date | Dec. 1 | March 1 | June 1 | Sept. 1 | Dec. 1 |
|---|---|---|---|---|---|
| Age at Retirement | 54 yrs./ 0 mos. | 54 yrs./ 3 mos. | 54 yrs./ 6 mos. | 54 yrs./ 9 mos. | 55 yrs./ 0 mos. |
| Service Credit | 20 yrs./ 0 mos. | 20 yrs./ 3 mos. | 20 yrs./ 6 mos. | 20 yrs./ 9 mos. | 21 yrs./ 0 mos. |
| Percentage of Final Compensation | 49.46% | 50.82% | 52.19% | 53.60% | 55.02% |
| Monthly Allowance | $2,473 | $2,541 | $2,610 | $2,680 | $2,751 |