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New Hire Orientation. Fresno County Employees’ Retirement Association. Location: 1111 H Street Fresno, CA 93721 Phone: (559) 457-0681 Fax: (559) 457-0318 Stop Mail: 40 Web Address: http://www.fcera.org Intranet Address: E-services Department Sites Retirement Association.
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New Hire Orientation Fresno County Employees’ Retirement Association Location: 1111 H Street Fresno, CA 93721Phone: (559) 457-0681 Fax: (559) 457-0318Stop Mail: 40Web Address: http://www.fcera.orgIntranet Address: E-services Department Sites Retirement Association.
Type of Plan • Defined Benefit Plan • Lifetime benefit • Defined by the following: • CERL and PEPRA laws adopted by the County • Type of membership • Age at retirement • Years of service • Final compensation • Your benefit is not based on contributions made to the plan
Membership • Membership is mandatory if working 50% or more of full time • If at the time of hire you are 60 years of age or older you will contribute unless you elect to not participate • Membership is optional for elected officials • Once election is made it is IRREVOCABLE
Types of Membership • SAFETY • Correctional Officers • Criminologists • Deputy Sheriffs • Firefighters • Chief of Investigations • District Attorney Investigators • Sheriff • GENERAL • Anyone who is not a Safety Member
Tier Levels of Membership • Your tier level is determined by laws in place at the time of employment into a position subject to membership • Each type of membership offers its own tier levels • Safety • Offers Tier Levels: I, II, IV, and V • General • Offers Tier Levels I, II, III, IV, and V
What is Reciprocity? • Reciprocity is the linking of two or more California Public Retirement Systems • Eligible Agencies Include: • Public Employees Retirement System (PERS) • 20 County Retirement Systems in California governed by the County Employees Retirement Law of 1937 • State Teachers Retirement System (STRS) • Judges Retirement System • Other California Public agencies with a contracted agreement with PERS (Example: City of Fresno)
Steps to Establish Reciprocity • Terminate your employment with the reciprocal agency • Leave your contributions on deposit with the reciprocal agency • Establish membership with FCERA within 6 months of your termination from reciprocal agency • Notify FCERA that you wish to establish reciprocity Reciprocity is available upon becoming a member of FCERA as well as when you are leaving and going to a reciprocal agency
Benefits of Reciprocity • All Tier Levels • Members who establish reciprocity after having worked for the reciprocal agency on or prior to 12/31/2012 will be placed into Tier IV • Your service credit from other reciprocal agencies will be added to service credit from FCERA to determine eligibility for benefits under all systems for purposes of vesting • Your highest final compensation average from either FCERA or the reciprocal agency is used to determine your benefit from both agencies • In order to receive these benefits you mustretire concurrently from all systems
Benefits of Reciprocity • Tiers I, II, III and IV • FCERA will use your entry age from the reciprocal agency to determine your contribution rate • Tier V • Members may be placed into Tier IV • Reciprocity is designed to protect your earned retirement benefits when you transfer from one California public agency to another. It is intended to encourage a career in public service.
Consequences of Breaking Reciprocity • Years of eligibility service for retirement may be impacted • Entry age for contributions may change if enrolled in a plan that has age based contributions • Tiers I, II, III, and IV • Age at which contributions are calculated may be impacted requiring a payment of under paid contributions prior to retirement
Smith John 111-11-1111
Smith John 111-11-1111 1111 H. Street Fresno CA 93721
Smith John 111-11-1111 1111 H. Street Fresno CA 93721 Retirement Association 11/01/2005 Retirement Coordinator
Smith John 111-11-1111 1111 H. Street Fresno CA 93721 Retirement Association 11/01/2005 Retirement Coordinator
Smith John 111-11-1111 1111 H. Street Fresno CA 93721 Retirement Association 11/01/2005 Retirement Coordinator
03 01 1977 Smith John 111-11-1111 1111 H. Street Fresno CA 93721 Retirement Association 11/01/2005 Retirement Coordinator
03 01 1977 Smith John 111-11-1111 1111 H. Street Fresno CA 93721 Retirement Association 11/01/2005 Retirement Coordinator
IRC 415 Notice • IRS code that limits the amount of benefits a Public Retirement Plan may pay an individual in one year. For 2015 the limits are: • For Safety members between the ages of 60-65 the maximum annual limit is $210,000 • For General members between the ages of 62-65 the maximum annual limit is $210,000
PEPRA Limits • Tier V Members • Pensionable Compensation Limits for contributions are set for this tier annually and are based on the Consumer Price Index • The amounts for 2015 are: • $117,020 annually if integrated with Social Security • $140, 424 if not integrated with Social Security • Once limits are met, no contributions will be withheld for the remainder of the payroll year
Tier Level I • Final Compensation used in retirement calculation: • Highest 1 year Final Average Compensation • General • 2.5% at age 55 (GCS 31676.14 + 31627) and a maximum of 3.2733% at age 60 • Safety • 2.5% at age 50 (GCS 31664 + 31627) and a maximum of 3.2748% at age 60 • Annual Cost of Living Adjustment (COLA) • April 1st of each calendar year up to a maximum of 3% • Contributions are deducted from your bi-weekly salary based on your current compensation earnable and the age you enter the retirement system. • Your contributions will change based on salary changes or actuarial valuations, which may cause contribution rate changes. • Your age for contribution calculations does not change as long as you are continuously employed with the County of Fresno or reciprocal agency.
Tier Level II • Final Compensation used in retirement calculation: • Highest 1 year Final Average Compensation • General • offers 2.0% at age 55 (GCS 31676.16) and a maximum of 2.4180% at age 63 • Safety • offers 2.2902% at age 50 (GCS 31664.2) and a maximum of 3.0% at age 55 • Annual Cost of Living Adjustment (COLA) • April 1st of each calendar year up to a maximum of 3% • Contributions are deducted from your bi-weekly salary based on your current compensation earnable and the age you enter the retirement system. • Your contributions will change based on salary changes or actuarial valuations, which may cause contribution rate changes. • Your age for contribution calculations does not change as long as you are continuously employed with the County of Fresno, or reciprocal agency.
Tier Level III • Final Compensation used in retirement calculation: • Highest Individual 3 year Final Average Compensation • General • 2.0% at age 55 (GCS 31676.15) and a maximum of 3.1336% at age 65 • Safety • Not offered • Annual Cost of Living Adjustment (COLA) • April 1st of each calendar year up to a maximum of 3% • Contributions are deducted from your bi-weekly salary based on your current compensation earnable and the age you enter the retirement system. • Your contributions will change based on salary changes or actuarial valuations, which may cause contribution rate changes. • Your age for contribution calculations does not change as long as you are continuously employed with the County of Fresno or reciprocal agency.
Tier Level IV • Final Compensation used in retirement calculation: • Highest Individual 3 year Final Average Compensation • General • 1.67% at age 57.5 (GCS 31676.16) and a maximum of 2.43% at age 65 • Safety • 2.0% at age 55 (GCS 31664) and a maximum of 2.62% at age 55 • No Annual Cost of Living Adjustment (COLA) • Contributions are deducted from your bi-weekly salary based on your current compensation earnable and the age you enter the retirement system. • Your contributions will change based on salary changes or actuarial valuations, which may cause contribution rate changes. • Your age for contribution calculations does not change as long as you are continuously employed with the County of Fresno or reciprocal agency.
Tier Level V • Final Average Compensation used in retirement calculation: • Consecutive 3 year Final Average Compensation • General • offers 2.0% at age 62 (GCS 7522.20) maximum of 2.5% at age 67 • Safety • offers 2.5% at age 55 (GCS 7522.25 (d)) maximum of 2.7% at age 57 • No Annual Cost of Living (COLA) • Contributions are deducted from your bi-weekly salary based on your current compensation earnable and the limit established for that payroll year. • Your contributions will change based on salary changes or actuarial valuations, which may cause contribution rate changes.
Benefit Calculator • FCERA’s web site has a benefit calculator accessible by: • Internet at: http://www.fcera.org • Intranet at: E-services Department Sites Retirement Association • By entering the required information you can receive an estimated retirement benefit at any time during or after your career with Fresno County. • The four pieces of required information include: • Your Tier • Your age at retirement • Years of service • Monthly salary
Contributions • Contributions are: • Deducted the 1st day of the pay period following your date of hire • Tax deferred • Credited with interest twice annually on June 30th and December 31st • Also made by your employer, you are only eligible to receive employer contributions as part of your lifetime benefit at retirement • Subject to change annually Contribution rates are provided each year by FCERA
Purchase of Fresno County Service • Service credit that may be purchased: • Extra help – service prior to membership • Part time service - less than 50% of full time • New hire period - period between hire date and FCERA membership • Unpaid medical leave - maximum one year of each leave • Unpaid military leave - all time served while a County employee • Redeposit previously withdrawn contributions - prior to retirement. If you return to membership with a FCERA plan sponsor within 90 days and redeposit withdrawn contributions within 180 days of your termination date with a FCERA plan sponsor will retain your original age.
Purchasing Service Credit • You must complete a Request for Service Credit Calculationform • Purchases in progress at termination will have a limited window to be paid in full. • Members whose funds remain in the plan after termination can purchase available service prior to retirement
Disability Retirement • You must be permanently incapacitated from performing the duties of your job • 2 types of Disability • Service Connected Disability • No minimum service required for eligibility • Injured on the job • Non-Service Connected Disability • Minimum of 5 completed years of service • Not injured on the job
Death Benefits Before Retirement • A death benefit is payable to your beneficiary upon your death as an active member before retirement • The basic death benefit consists of: • If you have completed at least 5 years of service, your surviving spouse or dependent children may elect to receive, in lieu of the basic death benefits, a continuing benefit • Deferred members – receive lump sum of member’s contributions plus associated interest ( ) One month for every year of service (not to exceed 6 months pay) Your accumulated contributions Last 12 months of pensionable pay x + + Interest
Required Documents for Retirement • Birth Certificate(s) • Member • Beneficiary • Marriage or Domestic Partner Certificate(s) • California is a community property state therefore your legal spouse is your beneficiary at death. Minor child – beneficiary after spouse • Court Filed Divorce Documents • Status only judgments are not acceptable • To change your beneficiary for any reason, you must complete a FCERA Beneficiary Designation Form and provide necessary documents for the new beneficiary • FCERA and Employee Benefitsdo notshare information. You must provide any changes to both departments.
Retirement Qualifications • You are eligible for service retirement benefits if: • You terminate your employment • You leave your contributions and interest with the retirement plan • Tiers I, II, III, and IV • Have completed at least 10 years of service and are age 50+ • You are a General Member with 30 years of service credit regardless of age • You are age 70 regardless of years of service credit • You are a Safety Member with 20 years of service credit regardless of age • Tier V • Have completed at least 5 years of service • General: minimum retirement age is 52 • Safety: minimum retirement age is 50
Deferred Member • To be eligible to defer your retirement benefits to a later date, you must have at least 5 years of service • Tiers I, II, III, and IV • If you do not have 5 years of service, you may leave your funds with FCERA in an interest bearing account until you are ready to withdraw your funds. • At age 70 members are eligible to begin receiving a retirement benefit • Tier V • You must have 5 years of service to retire at a later date
Withdrawal of Contributions • You may notborrow against your contributions for any reason. • As long as you are employed with Fresno County or with a reciprocal agency (if reciprocity has been established), including extra help, you cannot withdraw any of your contributions. • If you terminate employment, you need to file a Disposition of Member Retirement Contributionsform with our office, indicating your election for the disposition of your funds
Withdrawal of Contributions • If you elect to withdraw your funds at separation you will only receive your contributions and the interest associated with them • You will notreceive the contributions made by Fresno County on your behalf • The employer contribution portion is only payable if you stay long enough to draw a monthly retirement benefit
Tax Implications • If you choose to withdraw your contributions, when you terminate your employment, there will be a MANDATORY 20% Federal Tax withholding taken from your total..There may also be a penalty due when you file your tax returns. Speak with your tax professional before making your election. • If you Roll Over your contributions to another tax deferred account, there will not be a 20% withholding