Fresno County Employees’ Retirement Association
Retirement Planning
Location: 1111 H Street Fresno, CA 93721
Phone: (559)457-0681
Stop Mail #: 40
Web Address: http://www.fcera.org
Intranet Address: E-services  Department Sites 
Retirement Association.
RETIREMENT PLANNING
When Can I retire?

You can retire when your contributions have been in the
plan for 10 years and are age 50 or older and are “vested”
in the plan.

Being “vested” entitles you to Plan benefits funded by the
County contributions. This entitlement is unaffected even if
you terminate County service before retiring, provided that
you leave your contributions and interest on deposit with
the retirement plan. You are vested when you have
completed 5 years of service credit in the retirement plan.

If you have completed 5 years with another public agency
and meet the requirements to establish reciprocity, you
would be immediately vested in the Retirement Plan once
reciprocity is established.
How do I qualify for service
retirement?
You are eligible for service retirement benefits if:
 You terminate your employment.
 Leave your contributions and interest with the
retirement plan.
 Your contributions have been in the plan for 10 years
and you are age 50
Or - you are a General Member with 30 years of
service credit regardless of age.
Or - you are a Safety Member with 20 years of
service credit regardless of age.
Or - you are age 70 regardless of years of service
credit.
How are service retirement benefits
determined?
Retirement Benefits are based on:
 Years of service credit.
 Retirement Tier.
 Age at retirement.
 Final Compensation.
What types of service credit can be
purchased (buyback)?





Prior service - Extra help hours worked or hours
worked prior to becoming a member of the plan.
Redeposit of previously withdrawn contributions.
Unpaid medical leave - can purchase up to one year
of continuous leave
Unpaid military leave – can purchase all time served
while a County employee.
Prior Public Service - All employees hired prior to
4/1/01 must have applied by June 30, 2001. New
employees hired after that date have 90 days from
their date of membership to submit an application
with the retirement office.
How can I purchase my additional
service credit?


All time must be purchased prior to your
date of retirement.
Complete and submit to the Retirement
Office a “Request for Service Credit
Calculation” form. The Retirement
Office will calculate the amount of time
available for purchase and the cost.
How and when do I apply for
service retirement benefits?



You must file a written application with the retirement
office no more than 60 days prior to your date of
retirement.
You should schedule an appointment with the
retirement office at least 60 days prior to your date of
retirement. This is to ensure all the necessary
documents and paper work are completed timely.
If reciprocity applies, the effective date of retirement
from the reciprocal agency must be the same
effective date as your retirement with FCERA.
What documents do I need to
provide to the retirement office?






Your birth certificate.
Your beneficiary(s) birth certificate.
Your recorded marriage certificate (if applicable).
Your notarized State of California “Declaration of Domestic
Partnership” or valid “Certificate of Domestic Partnership”
registered domestic partnership (if your beneficiary is your
registered domestic partner).
The original copy of your Social Security estimate (if taking
the Temporary Annuity Option).
Filed Stamped Copy of your Domestic Relations Order
(DRO) (if applicable).
BENEFIT PAYMENT OPTIONS
What benefit options are available and when do I elect my
option?

The plan provides certain forms of monthly payments,
depending on the Benefit Option you elect. You will elect
your benefit option with the Retirement Office at the time
you retire.
The following are the forms of monthly benefits:





Unmodified Allowance
OPTION 1
OPTION 2
OPTION 3
OPTION 4
Unmodified Allowance


Provides the maximum retirement allowance to you
60% continuing monthly benefit to your qualified
spouse/registered domestic partner
– if you were married for at least one year immediately
preceding your retirement date or
– married for at least 2 years after retirement and your
spouse/registered domestic partner is at least 55 years of age
at the time of your death.

If you do not have a surviving spouse/registered domestic
partner,
– Provides a one time lump sum payment to your beneficiary of
any balance remaining from your accumulated contributions
less the sum of monthly retirement payments received by you
before your death.
Optional Forms of Payment

At retirement, you may elect an optional form of payment.
The election of an option results in a reduction of your
service retirement benefit. All optional forms of payment
are “actuarially equivalent” to your service retirement
benefit.

Option 1 - No continuance to your beneficiary
Option 2 - 100% continuance to your beneficiary
Option 3 - 50% continuance to your beneficiary
Option 4 – Equal continuing benefits to more than one
beneficiary



OPTION 1



Provides a slightly reduced retirement
allowance to you.
Provides a one-time lump sum payment to
your beneficiary of the remaining balance of
your accumulated contributions less the sum
of monthly annuity payments received by you
before your death.
Provides the opportunity to change your
beneficiary after you retire.
OPTION 2



Provides a reduced retirement allowance
based upon the age difference between you
and your beneficiary.
Provides a 100% continuing monthly benefit
to your beneficiary.
No opportunity to change your beneficiary
after your retirement even if the beneficiary
dies before you.
OPTION 3



Provides a reduced retirement allowance
based upon the age difference between you
and your beneficiary.
Provides a 50% continuing monthly benefit to
your beneficiary.
No opportunity to change your beneficiary
after your retirement even if the beneficiary
dies before you.
OPTION 4



Provides an actuarial equivalent retirement
benefit paid out in a method approved by the
Board of Retirement.
Provides equal continuing benefits to more
than one beneficiary, excluding an ex-spouse.
No opportunity to change your named
beneficiaries after your retirement even, if
your beneficiaries die before you.
OPTION 4 (continued)


No reversion to the remaining
beneficiaries should they predecease
one another.
Typically selected when the Domestic
Relations Order (DRO) requires a
continuing benefit to an ex-spouse.
What is the Temporary Annuity
Option (TAO)?

FCERA provides a Temporary Annuity Option (TAO)
available to members retiring prior to 62 who are
entitled to Social Security Benefits.

The option is designed to level out retirement income;
increasing retirement benefits prior to age 62 and
deceasing benefits after age 62, when Social
Security Benefits begin.
What documents are required and
when do I elect the TAO?

Provide a current copy of your Earnings and
Benefit Statement from the Social Security
Administration. The request should be made
to Social Security no more than 6 months
prior to your anticipated date of retirement.

Make your election at the time you elect your
retirement option.
Will I receive a Cost of Living
Adjustment (COLA) when I retire?

Yes. Cost of living adjustments (COLA) are
added to your basic retirement allowance
effective April 1 of each year in accordance
with changes in the Consumer Price Index
(CPI) for the San Francisco Bay Area.

The current maximum increase in any year is
3%.
What is the Health Benefit?


Retiree health benefits are paid by FCERA in
the form of an additional cash benefit, with
the expectation (but not the requirement) that
the funds are used to offset the cost of retiree
health insurance.
There are two components of the Health
Benefit; the vested and Non-Vested portion.
Settlement (Vested) Health Benefit
portion

Effective with the Settlement Agreement
signed in December 2000, an additional
health benefit is provided as established by
the Agreement. Currently, the benefit is set at
$3.00 per full year of service, (excludes public
service years purchased or golden
handshakes granted by your employer), to a
maximum of $90 per month.

Increases are defined in the Settlement
Agreement.
Supplemental (Non-Vested) Health
Benefit portion



In addition to your monthly retirement benefit,
you may receive a non-vested health benefit
funded through excess earnings of the retirement
system.
As of July 1, 2006, the benefit is a maximum of
$150 per month for members with 30 years of
qualifying service (excludes public service years
purchased or golden handshakes granted by your
employer).
Adopted by the Board of Retirement. Current
available monies are anticipated to be depleted in
10 to 15 years.
Does Health Insurance coverage
continue during my retirement?


Continued health care coverage is available
to retirees and their spouses through the
County of Fresno.
At the time you apply for your retirement
benefits, you must also contact the County of
Fresno, Employee Benefits to apply for
continuing health insurance coverage.
Are there any limitations on the
amount of my benefit?




Yes. The Plan is subject to the limits of
Internal Revenue Code (IRC) Section 415.
IRC 415 limits the amount of benefits a Public
Retirement Plan may pay an individual in one
year.
ie: Age 62-65, maximum 2006 annual limit is
$175,000
The County of Fresno has adopted a
Replacement Benefit Plan
Will Social Security affect my Plan
Benefit?

No. The amount you receive as a benefit
from the Plan is not impacted by your other
income sources, including Social Security.
Is Federal and State Income Tax
withheld from my Retirement check?


Your service retirement benefit is taxable and
subject to Federal and State Income Tax
laws.
You may choose not to have taxes withheld
from your retirement allowance. However,
you may then owe taxes to the Federal or
State taxing authorities.
When will I receive my first
retirement check?

In general, you will receive your first check
the month (end of the month) following your
date of retirement. Please note that
reciprocity, divorce, electing Option 4, or
submitting your documents late, may delay
receiving your first check.
When is payday?

Retirees are paid once a month on the last
business day of the month by both direct
deposit and paper check.

Paper checks are mailed to your home four
business days before the last business day of
the month.
Can I have my retirement check
deposited directly into my Bank
Account?

Yes. Direct deposit is available. The Board of
Retirement strongly recommends that you
select direct deposit of your retirement
benefits because it is the fastest, safest and
most convenient method of receiving
payment.
Any Questions?