CCCERA: Your Retirement Plan

 

A benefit of permanent employment (half-time or more) with Special Districts or Contra Costa County is membership in CCCERA, the Contra Costa County Employees' Retirement Association.  The association performs a variety of complex tasks required for administration of service retirement benefits for more than 10,000 current employees and 6,000 retirees within the system. CCCERA is a proactive provider of quality service and information to our members. Board of Retirement meetings, which are open to the public, are usually held twice each month.  Board members represent all facets of our membership, while safeguarding in the most prudent, financially responsible manner, the funds necessary to guarantee future pension benefits.

 

Your retirement plan is a defined benefit plan, meaning that regardless of investment returns or the amount you contributed during your working life, your retirement benefit is guaranteed. Monthly benefit payments are based on a formula, approximately:

 

Age Factor  x  Final Average Salary  x  Years of Service

 

As a '37 Act Retirement System, there are many laws and regulations required for the administration of your plan.  You have probably received a Tier handbook, which outlines some of the details, such as age factors, retirement eligibility, naming or changing beneficiaries, what you need to do if you terminate employment, or wish to purchase eligible service credit.  These handbooks are usually sent about three months after you begin employment.  If you have not received this handbook, please call the Retirement Office and request one.

Find The Information You Need

 The staff of the Retirement Office is available to answer your questions Monday through Friday, 9:00 a.m. to Noon, and 12:30 p.m. to 4:00 p.m. After hours, you can call and leave a voicemail message.  Telephone number: 925.646.5741.

Retirement Counselors specialize in helping you understand your benefits so you can make informed choices during your working life, and assist you in the retirement process.  After reviewing your file, counselors can answer questions specific to your own situation.  Counselors trained in both active and retired member issues are accessible by telephone.  You can also make individual appointments to discuss your options.

Group Counseling is a new service designed for members to increase their knowledge of how the retirement plan works, including maximizing their future benefit.  All members who are vested are welcome.  Sessions are held at the Retirement Office.  Call the Retirement Office for specific dates and times. Group size is limited, so please call to reserve your space. 

 

 

Active and deferred members receive an annual Benefits Statement summarizing theirretirement account through the previous year.  This statement reviews your personal information, such as named beneficiary, account balances, current address.  This is a good time to verify that the information the retirement association has for you is accurate.  (County employee address changes must be made through the department payroll clerk.)
Newsletters are mailed to other active and retired members.  Articles cover many different subjects of interest, from legislative updates, to Board Member elections, to benefit enhancements.

 

A Few Definitions:

 

Membership Date    The official date of your membership is the first of the month following the month you started working or you became a permanent employee.This is the first pay period contributions for retirement benefits are withheld from your paycheck.

 

Contribution Rates   Contribution rates are based on a complicated structure, which is divided between employer and employee.  See the last page for an interesting overview of what you pay versus what your employer pays to provide your future benefit.  Your age at entrance into the system determines your basic contribution rate.

Member's

Enrollment

Card   The information you put on this card is very important.  Essential data is entered into the system from this card.  Please be sure to fill out this card as accurately as possible: your legal name, date of birth, beneficiary name, and date of permanent employment.

 

Vesting                     Upon meeting eligibility requirements (completion of five full-time years of retirement service credit) vested members acquire a non-forfeitable right to a retirement benefit.

 

Reciprocity               You can "link" service credits earned during employment, and retirement benefits from previous employers, if those employers have reciprocal agreements with CCCERA.  CCCERA has these agreements with all California counties governed by the 1937 Retirement Act, with CALPERS, and with many other counties, cities and special districts. Reciprocity has many advantages for maximizing retirement benefits, but the rules are specific.

 

Disability Benefits   You may be eligible for a disability retirement if an injury is work-related (no minimum service is required).  If your disability is not work-related, five years of retirement service credit is required for Tier 1 and Safety members, ten years of retirement service credit for Tier 2 and Tier 3 members.

  

Purchasing Service Credit    The more service credit you have, the higher your retirement benefit.  By purchasing eligible service credit, you can increase your retirement benefit, and in some cases, become eligible to retire at an earlier date.  But not all "time" is eligible for purchase.

 

                                 Eligible service time possibilities include: medical leave of absence, time prior to membership with CCCERA, public service time, redeposits, domestic relations order.

 

Retirement Tiers      Currently, there are 7 retirement plan tiers within the system: Tier 1, Tier 2, Tier 3, and Safety; within each tier there are two categories: enhanced and non-enhanced. Your employment status determines which membership tier you enter. The majority of new employees entering the system will be Tier 3 plan members. With very limited exceptions, the Safety tier designation is reserved for law enforcement and fire personnel. For detailed explanations of your plan, please consult your Members Handbook.

Retirement Tiers in Transition

 

Year 2002/2003 encompassed a wide range of benefit changes and enhancements, including the elimination of future service in Tier 2. All future service credit for new employees (and current employees who were members in Tier 2), will now be in Tier 3, with the exception of two districts. The contribution rate for Tier 3 is higher, but the retirement benefit is, as well. CCCERA does not grant benefits; the system administers benefits that are either mandated by law, or adopted by the Board of Supervisors. 

 

Employee collective bargaining units can also impact trends in benefit enhancements. The Board of Supervisors adopted union M.O.U.'s, that include the 2% at 55 benefit enhancement for general members, and the 3% at 50 benefit enhancement for safety members. These benefit structures will favorably impact future retirement planning, by allowing a higher benefit at an earlier retirement age.

 

 

IRS Alert: Permissive Service Purchase Possibilities

 

Recently enacted IRS regulations (EGTRRA) expand the "portability" of contributions you may have made to various Deferred Compensation Plans. At some time during your employment you may choose to "purchase" permissive service credit to add to your basic benefit, by raising (buying) some years of retirement service credit. If you choose, the new IRS ruling will allow you to use funds you have previously contributed to a 457 fund, for example, to buy eligible time, by rolling over your contributions from the 457 account to your CCCERA retirement account.

 

You can, of course, "buy," eligible time by contract, or by lump sum payment, as well. The new IRS rules laws are an additional way to finance your purchase.

 

 
Employer vs. Employee: Who Picks Up The Tab for Retirement Benefits?

 

Below is a partial county pay stub that illustrates some aspects of the way things work in your pension plan.  None of us like to pay more than we need to, either for present costs or future security. But we all know the importance of a stable retirement income.  The funds to secure that check in the mail each month after we stop working must come from somewhere.  Here's a simplified look at the dollars you and your employer invest in your future.

 

Your Employee Contribution

 

The amount of your employee basic and COLA (cost-of-living-adjustment) contribution each pay period depends on your entry age and monthly compensation earnable (salary).

 

Your Employer Contribution

 

Your employer pays "normal costs," a percentage of payroll sufficient to fund benefits, AND 50% of the employee's basic contribution (called subvention).

 

EMPLOYER PAID BENEFITS

BEFORE TAX DEDUCTIONS

 

Description                                    Current               

Description                                              Current

 

FED MED/EE - CO SHARE                     XX

RED OASDI/EE - CO SHARE                 XX

STATE UNEMPLOYMENT TAX           XX

WORKERS COMP COSTS                      XX

HEALTH NET PCP                                  XX

DELTA DENTAL PCP                             XX

RELIASTAR LIFE 7600 ER                    XX

 

RETIREMENT - CO SHARE               612.00

HEALTH PLAN                                         XX

 

DENTAL PLAN                                         XX

 

 

RETIREMENT                                        140.92

 

 

EMPLOYEE SHARE OF RETIREMENT

                                                                                    CONTRIBUTION

EMPLOYER SHARE OF RETIREMENT

CONTRIBUTION