old windmill at John Muir HouseWinter 2009 snow

WELCOME!

CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION

  

 
 
Retirement Board Depooling Study by The Segal Company, CCCERA's Actuaries:

At a special meeting in May, The Segal Company presented a depooling methodology that would base an initial allocation of assets and liabilities for each employer (cost group) as of December 31, 2009. Individualized terminal pay assumptions would be developed for each employer using actual terminal pay data gathered since 2002. After adoption by the Board, these new terminal pay assumptions would be applied to the current valuation study.This method would reflect terminal pay experience, by employer, since 2002, but not other historical data.(Past pay data has not been tracked in a form that can be used to reflect each employers' experience.) For a comprehensive discussion of this proposed method, please click this link.

After discussion, the Board agreed analysis of Safety employers' data would be necessary prior to making a decision on depooling methodology. This data compilation will be sent to Segal for analysis. Notification of the next Board meeting that addresses the depooling issue will be posted on this page.
 

2010 COLA (Cost of Living Adjustment for Retirees)
At the February 10, 2010 Board Meeting, the Board of Trustees voted to accept our actuary's recommendation for COLA adjustments to retired member pension benefits. which will commence on April 1, 2010. Retirees will see this increase reflected on their May 1, 2010 pension benefit. Most retirees will receive a 2.5% increase. Members who retired on or before April 1, 1988 will receive a 3% COLA increase. (This group of retirees had accumulated carry-over remaining in their COLA bank.) For further details about the COLA, please see the Spring 2010 edition of New Roads, posted on this website.


Special Notice: RETIREES May Need to Adjust Their Federal Income Tax Withholding for 2010

The American Recovery and Reinvestment Act of 2009 includes a tax credit designed to boost working American's take-home salary by a few dollars each pay period as part of the federal economic stimulus package. To accomplish this credit, the IRS issued new tax tables to allow slightly less withholding from pay checks, so workers could keep these dollars, which in prior years, would have been withheld for income tax. This program is called the "Making Work Pay" tax credit. The new tax tables went into effect in April 2009, and are effective for both 2009 and 2010.

What does this have to do with CCCERA Retirees?

The new income tax tables are withholding less from pension payments, too. Since the tax credit is only for employed men and women as an "earned income credit," many retirees may not be eligible for the tax credit created by decreased withholding amounts. (Pension benefits are not considered "earned income" by the IRS.) Generally, retirees who do not qualify for the tax credit are people whose sole income source is from pension benefits. These retirees may not have the correct tax amount withheld from their incomes for 2010.

What should retirees do about this change in tax withholding?

Please take some time now to estimate how much tax you will owe for 2010, especially if you have another job or if you are married and your combined income with your spouse puts you in a higher tax bracket.

If you do not want your withholding amount reduced for 2010, you must file a new Form W-4P with CCCERA.

If retired members verify that their current withholding amounts will cause incorrect withholding due to the new tax tables, retirees should request a Form W-4P from CCCERA, fill out any additional amounts or withholding status changes and return the form to the Retirement Office. This form is also available on this web site by clicking this link.

CCCERA cannot offer tax advice to our members. We strongly encourage retirees to consult with their personal tax advisors to make sure their withholding amounts are correct. The IRS has information and resources that can assist with calculating any additional tax amounts retirees may owe on their web site, including a withholding calculator. Click this link for the IRS home page.

Benefit your future. . .today
 

As a member of CCCERA, you are investing in your most valuable asset, your future. Whether you are beginning your working life or have extensive public service,contributions to your CCCERA retirement account ensure financial security that will benefit you (and in some cases, your survivors) long after you complete your career.

CCCERA is a "defined benefit" retirement plan. This means your future retirement benefit is not based on how much you and your employer contribute, investment returns or other factors that could cause your pension value to fluctuate.

Defined benefit pensions are based on a formula set by law, in this case the County Employees' Retirement Act of 1937, which was adopted by Contra Costa County in 1945. The Association is administered by the Board of Retirement to provide service retirement, disability, death and survivor benefits to County employees and 16 other participating agencies.

We invite you to explore your membership benefits through this website, our publications, or Group Counseling program. CCCERA staff is also available to answer your questions by telephone Monday through Friday, from 9 a.m. to 4 p.m. (The office is closed between Noon and 12:30 p.m. for lunch.)