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Cynthia Lau Legislative Affairs Officer AB 1902. Comparison of Plan E and Plan D – New Hire Elects One ContributoryVestingFinal Comp Active Disability/

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Presentation on theme: "Cynthia Lau Legislative Affairs Officer AB 1902. Comparison of Plan E and Plan D – New Hire Elects One ContributoryVestingFinal Comp Active Disability/"— Presentation transcript:

1 Cynthia Lau Legislative Affairs Officer AB 1902

2 Comparison of Plan E and Plan D – New Hire Elects One ContributoryVestingFinal Comp Active Disability/ Death Benefits Retirement Benefit Plan ENo10 yrs.3 yrs.NoLower Plan DYes5 yrs.1 yr.YesHigher

3 Prospective Plan Transfer (PPT) D E E D May transfer back and forth – may transfer between plans no more than once every 3 years while in period of “active employment.”

4 What happens if member is disabled while in Plan D? To apply for disability retirement, PPT transferee must have either: Two yrs. continuous active service after transfer, or Earned 5 yrs. service credit under Plan D after transfer Requirements prevent Plan E member from transferring to Plan D and immediately filing for disability retirement.

5 Issue – Member may be disabled, but ineligible to apply for LACERA disability retirement due to failure to meet 2 yr./5 yr. requirement.

6 County Long-Term Disability Plan (LTD) Provides benefits for Plan D and Plan E members who are sick or injured and cannot work. Benefits expire at age 65, or when no longer disabled.

7 After 2 yrs. on LTD, County requires Plan D (contributory) members to file for retirement in order to continue LTD. LTD benefit is offset (reduced) by amount of retirement allowance County does not require Plan E members to file for retirement after 2 yrs. to continue LTD.

8 Under certain circumstances, it may be more advantageous for the affected member to continue LTD benefits under Plan E than under Plan D. Influencing factors include: Member’s age Amount of service credit Status of LTD Health Insurance

9 Currently (Pre-AB 1902) To continue LTD benefits, a disabled Plan D PPT transferee who fails to meet 2 yr./5 yr. requirement may only apply for a service retirement.

10 Effective January 1, 2011 (Post-AB 1902) Disabled Plan D PPT transferee who fails to meet 2 yr./5 yr. requirement has options: May transfer back to Plan E and continue under the County LTD program Or may file for a service retirement under Plan D

11 NOTE: Plan D members electing deferred retirement are ineligible for LTD benefits.

12 How can you help? Be aware of this new provision and communicate it to employees. Effective


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