CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION
  
 
 


Retirement benefits are calculated using three important variables:

 
31676.01

Highest Average Monthly Salary

  
Years of Retirement Service Credit
 
Age at Retirement Factor
   
The percentage (expressed in decimal form) mandated by the 1937 Act statute and adopted by your employer, that is multiplied by your age and years of service to calculate your benefit. For example, 2% at 55 means if you retire at age 55, your benefit will be calculated using 2%, or .02.
For all tiers, (except Tier 2), Highest Average Monthly Salary is calculated by taking your highest consecutive (unbroken by any leaves of absence) 12 months of salary and averaging that amount.
Tier 2 salaries are averaged over 36 consecutive months.

The length of time you contributed to the retirement system. You accrue retirement service credit for each pay period in which you make a contribution. By this definition, you do not earn service credit for any time you are:
1. Absent from your job  without pay,
2. Working in a position not covered by the retirement system,
3. Working part-time, less than 20 hours a week.

   

Highest
Average Monthly Salary    
X
 Years of Retirement Service Credit X Age at Retirement Factor
=
 Your Retirement Benefit
Vesting and Deferred Benefits
Members of CCCERA who have at least 5 years of retirement service credit are "vested" in the system.
Vesting, in its purest sense, means a member has earned the absolute right to a retirement benefit when all other conditions for retirement eligiblity are met. Recent legislation has changed aspects of this concept. Now, all members are entitled to retirement account options once previously reserved for vested members, with one important difference:
 
The age you may begin receiving a monthly retirement benefit is different for vested and non-vested (terminated employment before achieving 5 years of service credit) employees.
Vested Members (5 or more years of retirement service credit) can begin receiving a monthly benefit at their earliest eligible retirement age (usually age 50). Vested members who terminate employment retain this right, if they become deferred members, leaving their contributions and interest in their CCCERA account.
31700.
 
Non-Vested Members (less than 5 years of retirement service credit) who defer (do not take a refund when they terminate employment) are not eligible to begin receiving a monthly retirement benefit until the year following the year in which the member turns 70 1/2 years old.
31706.
 
Here's an example:
(Remember, basic retirement eligiblity for General Members is age 50, with ten years of retirement service credit.)
You started working for a participating employer when you were 33. At age 40, you leave public service and go to work in the private sector. You decide to leave the retirement contributions you made (and interest) with CCCERA. At this point,
 
  • Your membership with CCCERA becomes "deferred."
  • You have accrued 7 years of service credit, so you are "vested."
  • Your contributions continue to earn interest as long as your funds remain at CCCERA.
  • You are not eligible to retire, since you are not 50 years old.

    • When you reach age 50, you will be eligible for a monthly retirement allowance, since

  • 50 is your first eligible retirement age.
  • Your total service credit, plus deferred status period equals at least 10 years.
  • Your funds (contributions and interest) have been on deposit at least ten years.
    • You do not have to retire at age 50, but you must begin receiving retirement benefits by the year following the year you turn 70 1/2.
    If you defer, your contributions will continue to earn interest until you either take a refund, or begin receiving a monthly benefit. Both vested and non-vested members have the option of leaving their contributions in their CCCERA accounts, should they terminate retirement.