FCERA PRE-RETIREMENT
SEMINAR
January 17, 2013
PRESENTATION TOPICS

How will PEPRA affect me?
What is a Defined Benefit plan?

Membership

Other Service Eligibility

Types of Retirement

Choosing Best Retirement Date
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Retirement Options

Retirement Timeline
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January 17, 2013
HOW WILL PEPRA AFFECT ME?
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Majority of changes affect Tier V members only
Tiers I – IV - Benefit calculations have not
changed
Normal cost of contributions will increase for
active members at some point between now and
2018
Four earn codes that are no longer pensionable
as of 1/1/13
–
3
Cell Phone, Car Allowance, Uniform Allowance and
out-of-town allowances
January 17, 2013
DEFINED BENEFIT PLAN

Defined Benefit Plan
–
–
Lifetime benefit
Based on formula using:
Age at retirement
 Years of service
 Final average compensation earnable

–
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–
Tiers I – III, Annual Cost of Living – Up to 3%
annually
Not based on contributions
January 17, 2013
MEMBERSHIP

Safety – Tier I, II, IV, V
–
–
–
–

General – Tier I, II, III, IV, V
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Sheriff’s Officers
Correctional Officers
DA Investigators
Firefighters
All others
January 17, 2013
ELIGIBILITY SERVICE

Eligibility Service
–
Years of credited service earned by the member which we
use to determine the member’s qualification to service
retire.
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Service from date of membership to date of termination,
excluding breaks in service
Prior county service purchased
Leaves of absence purchased
Reciprocal service
Deferred service
Reciprocity
Purchase Service Credit
January 17, 2013
RECIPROCITY


Must have left contributions in reciprocal agency’s
plan
Use your entry age from reciprocal agency
–
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(Tiers I - IV only - incoming reciprocity)
Years of service from reciprocal agency added to
years of service at FCERA to determine retirement
eligibility
Highest compensation earned from FCERA or
reciprocal agency will be used in benefit calculation
(generally)
Must retire concurrently from all systems to receive
benefits from reciprocity
January 17, 2013
CONSEQUENCES OF BREAKING
RECIPROCITY

Tiers I, II, III, IV –
–

Tier V –
–

Contributions are not age based
Tiers I, II, III, IV, V –
–
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Age at which contributions are calculated may be
impacted
Years of eligibility service for retirement may be
impacted
January 17, 2013
PURCHASE SERVICE CREDIT

You may purchase:
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Prior County Service
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–
–
–
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Medical Leave of Absence
Military Leave of Absence
Prior Public Service (recalculation only)
Time that cannot be purchased
–
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Extra help
New hire period
Redeposit previously withdrawn contributions
–
Personal Leave of Absence
Educational Leave of Absence
January 17, 2013
TYPES OF RETIREMENT
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
Service Retirement

Service Connected Disability (SCD)

Non-Service Connected Disability (NSCD)
January 17, 2013
SAFETY MEMBER - Tiers I - IV

10+ years of retirement service eligibility
–

20+ years of retirement service eligibility
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At least 50 years of age
No minimum age required
January 17, 2013
GENERAL MEMBER - Tiers I - IV

10+ years of retirement service eligibility
–
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30+ years of retirement service eligibility
–
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At least 50 years of age
No minimum age requirement
Age 70, regardless of service eligibility
January 17, 2013
SAFETY and GENERAL MEMBERS
- Tier V

Safety Member
–
–

General Member
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–
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5+ years of service
At least 50 years of age
5+ years of service
At least 52 years of age
January 17, 2013
SERVICE RETIREMENT

Age at retirement

Final average compensation earnable
–
–
–

Total years of service
–
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Tiers I and II – Highest consecutive 365 days = 1 year
Tiers III and IV – Average of 3 highest individual years
Tier V – Average of 3 highest consecutive years
Earned plus purchased service credit
January 17, 2013
SERVICE CONNECTED DISABILITY
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
Unable to work due to injury or illness related
to your specific job duties

No minimum service requirement

Pays up to 50% of final average compensation
or Service Retirement, whichever is greater
January 17, 2013
NON-SERVICE CONNECTED
DISABILITY
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
Unable to work due to injury or illness not
related to your specific job duties

Must have minimum 5 years service credit

Benefit varies depending on age and years of
service. Contact a retirement coordinator for
more information
January 17, 2013
CHOOSE THE BEST RETIREMENT DATE
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
Each ¼ year of age increases benefit

Tiers I – III - Up to 3% Cost of Living Adjustment
(COLA) paid each April (in general)

Tiers IV and V – no annual cost of living adjustment
January 17, 2013
RETIREMENT OPTIONS
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
Unmodified Option

Option #1
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Option #2
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Option #3
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Option #4
January 17, 2013
Unmodified Option

Highest monthly benefit

60% continuance to eligible beneficiary
–
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May change beneficiary after retirement
Eligible Beneficiary
–
Married/registered partnership for at least 1 year prior to
retirement, or
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Married/registered partnership for at least 2 years at member’s
death AND spouse/partner is at least age 55 at member’s death
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Minor child/children
January 17, 2013
Option #1

No survivor continuance

Slightly reduced monthly benefit
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Upon death, beneficiary receives lump sum payment
of remaining contributions and interest
–
Uses your actual contributions at a slower rate
May change beneficiary after retirement
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January 17, 2013
Option #2

A reduced monthly allowance based on age of
beneficiary
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100% continuance to beneficiary
–
–
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Does not have to be eligible spouse
Cannot change beneficiary for any reason
January 17, 2013
Option #3

A reduced monthly allowance based on age of
beneficiary
–
–
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50% continuance to beneficiary
Does not have to be an eligible spouse
Cannot change beneficiary for any reason
January 17, 2013
Option #4

Customized actuarial calculation based on
specific instructions
–
–
–
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Used to comply with Marital Settlement Agreement
due to divorce
Allows customization of retirement for multiple
beneficiaries
Cannot change beneficiaries for any reason
January 17, 2013
TEMPORARY ANNUITY OPTION (TAO)


Advance benefit based on Social Security Estimate
Higher allowance to retirees under age 62
–
–
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FCERA allowance is increased until age 62, then decreased
until death
Cost of living reduced at age 62 on TAO portion of COL

Levels out retirement income with Social Security

Does not affect future social security benefits
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Does not affect survivor continuance

Only available for Service Retirement
January 17, 2013
TAO COMPARISON
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
General member
Age 50

Social Security estimate
$600.00

Modification factor

Advanced by FCERA
0.3302
$198.00
January 17, 2013
PENSION WITH TAO

Base retirement
Temporary Annuity Option
$1500.00
198.00

Total pension
$1698.00


Social Security reduction
(600.00)
Total FCERA pension (payable at age 62) $1098.00
Social Security (payable at age 62)
600.00

Combined pensions (at age 62)
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(payable to age 62)
$1698.00
January 17, 2013
PENSION WITHOUT TAO
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Base retirement for life
Social Security (payable at age 62)
Combined pension (at age 62)
$1500.00
600.00
$2100.00
January 17, 2013
TAO CHART – WITH TAO
Selection of a retirement benefit with the TAO will provide a level
income until the member’s death provided the member elects to
begin receiving Social Security benefits at age 62
With TAO
(Provides a level income until member's death)
FCERA and Social Security
Allowance Combined
$2,500.00
$2,000.00
$1,500.00
Social Security
Advance
$1,000.00
FCERA
Retirement
$500.00
Social Security
Retirement
$0.00
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50
52
54
56
58
60
62
64
66
68
70
72
74
Age
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January 17, 2013
TAO CHART – WITHOUT TAO
Selecting Retirement Option without the TAO will allow for increased
retirement income when Social Security benefit begins
FCERA allowance to age 62
when Social Security Retirement
Added
Without TAO
(Provides increased income with Social Security)
$2,500.00
$2,000.00
$1,500.00
FCERA
Retirement
$1,000.00
Social Security
Retirement
$500.00
$0.00
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50
52
54
56
58
60
62
64
66
68
70
72
74
Age
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January 17, 2013
HEALTH BENEFIT ALLOWANCE
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Provides an additional cash benefit to retirees
–
Tiers I, II, III (General and Safety) and Tier IV Safety
- Settlement Health Benefit provides an ongoing
amount based on years of service (permanent
benefit)
–
Tiers I, II, III, IV, V (General and Safety) Non-vested
Health Benefit amount based on years of service
(may be modified or eliminated by the Board of
Retirement at any time – currently scheduled to end
in calendar year 2016)
January 17, 2013
REQUIRED DOCUMENTS FOR
RETIREMENT

Required Documents:
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Member’s birth certificate
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Beneficiary’s birth certificate/s
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Marriage Certificate/Certificate of Registered
Domestic Partnership (if applicable)
–
Dissolution of Marriage documents (if applicable)
Judgment, (Status Only – not acceptable)
 DRO/Marital Settlement Agreement
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–
Social security estimate (if choosing TAO)
January 17, 2013
RETIREMENT TIMELINE

5 years from retirement
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Provide required documents
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Purchase available service credit
Attend FCERA retirement planning seminar
3 years from retirement
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Birth/Marriage Certificates, Divorce documents
Review retirement calculator – www.fcera.org
January 17, 2013
RETIREMENT TIMELINE

1 year from retirement
–
Target possible Retirement date
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Contact a FCERA retirement coordinator to
schedule a pre-retirement counseling session
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Contact reciprocal agency if applicable
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Must retire from FCERA and all reciprocal agencies on
the same day
January 17, 2013
RETIREMENT TIMELINE
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3 months from retirement date
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Schedule counseling session with Retirement
Coordinator
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Obtain Social Security Estimate if electing the TAO
January 17, 2013
RETIREMENT TIMELINE
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1 month prior to retirement date
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Contact Personnel Services regarding accrued leave
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Contact your bank of choice and make alternate arrangements for
any payroll deductions now in place
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Resolve any retirement questions with your FCERA Retirement
Coordinator
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Finalize details regarding Health Insurance and Deferred
Compensation
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Notify your department of your retirement date.
 FCERA must have a copy of an accepted letter of resignation.
January 17, 2013
RETIREMENT PAYROLL DEDUCTIONS

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FCERA withholds specific deductions from
retirement checks

Taxes

Health insurance payments

REFCO dues

Garnishments as required by law
January 17, 2013
WORKING AFTER RETIREMENT
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
You may work a maximum of 960 hours per year with
a FCERA Plan Sponsor

You may not return to work as a full-time employee

You may work in a extra-help, contractual or
temporary service position

Mandatory 180 day break between retirement and
date of rehire

You may have not received unemployment benefits
within one year prior to returning to work in these
capacities
January 17, 2013
FCERA CONTACTS

Mailing address
–

Call FCERA at (559) 457-0681

Questions or appointments
–
A Retirement Coordinator will assist you

Website – www.fcera.org

Comments on service
–
38
1111 H Street Fresno, CA 93721
Email us using “FCERAwebmail” or from our website
January 17, 2013
HAPPY RETIREMENT
The decisions you make as you plan for
your retirement benefits with Fresno
County Employees’ Retirement
Association will affect the rest of your
life. We look forward to meeting you
and working with you as we guide you
through the retirement process.
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January 17, 2013