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Carlos Barrios Section Head, Outreach Leaving County Service Workshop.

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Presentation on theme: "Carlos Barrios Section Head, Outreach Leaving County Service Workshop."— Presentation transcript:

1 Carlos Barrios Section Head, Outreach Leaving County Service Workshop

2 Presentation Covers… Who Should Attend Deferring Retirement Reciprocity Withdrawing Retirement Returning to Service

3 Who should attend? Employees who received notice they will be laid off, have recently been laid off, or are terminating Employees who are members of LACERA Groups of 8 or more

4 Deferring Retirement Vested member terminates County service and leaves his or her Plan contributions on deposit with LACERA. Vesting requirements Combined Plans: vesting requirements Leaving contributions Interest Mandatory distribution on April 1 of the year following the year the member reaches age 70 ½

5 Reciprocity What is reciprocity? Combines service to help meet o Vesting requirements o Minimum retirement eligibility requirements Highest salary between agencies Requirements o 6 months or less o Concurrent retirement

6 Withdrawal Timeline for Contributory Members Withdrawal is paid 30-60 days after all documents are received o Termination date o Withdrawal packet mailed within 30 days o Withdrawal application o Rollover/Transfer Certification form o Waiver of benefits Lifetime pension Right to apply for Disability Health insurance benefits Reciprocity

7 Withdrawal & Taxes Distribution o 20% federal withholdings o 10% federal penalty if under age 55 o 2% California state withholdings o 2.5% state penalty if under 55

8 Withdrawal & Taxes Rollover o Avoids tax penalties o No withholdings o Continues as a retirement investment

9 Retirement Eligibility requirements Requirements vary based on Plan(s) o Single Plan o Two Plans o Up to Three Plans

10 Return to Service Vested or Non-vested Choice in Plans based on former Plan Withdrew or left contributions Redeposit Re-employment within 1 year after layoff o Contribution age rate returns to pre-layoff rate if they did not withdraw or if they redeposit withdrawal plus interest

11 Contact LACERA 300 N. Lake Ave., Pasadena, CA HR Pros call 626-564-6000 ext. 3384 to schedule a jobsite workshop Contact info for employees Phone: 1-800-786-6464 Email: Web site:

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