CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION
  
 

Annual Benefit Statements
The Annual Benefit Statement contains a summary of your account at a given date, usually December 31st of the previous year. This information includes your designated beneficiary, your address, date of birth and membership date. There is also a tally of your contributions and interest, any service purchases you have completed, and estimates of your projected retirement benefit at appropriate ages. These estimates will assist you with retirement planning, but do not include many of the variables that will impact your final benefit estimate as you near actual retirement. For example, even though the benefit statement uses ages in the future to estimate your benefit, the projected retirement benefit is calculated using your present salary, since there is no way of guessing what your salary will be at your time of retirement.

This statement is a snapshot in time, and a general guideline to help keep your file current with CCCERA. After you review the document, you can submit a form enclosed with the statement, to make changes to your information (if needed), such as updating your beneficiary.

Remember, these resources only provide an estimate of your retirement benefits. In order to receive a more accurate, detailed projection of your benefit, you will need to contact CCCERA and discuss your request with a Retirement Counselor.

Account Balances
In a defined benefit system like CCCERA, account balances (the total of your contributions plus interest accrued) have no effect on your final retirement benefit. Benefits are determined by a formula (Final Average Salary (FAS) x Years of Service Credit x Retirement Age Factor), which is not based on your contribution amount. (In defined contribution plans, such as a 401(k), your contributions, interest and investment gains or losses form the basis of your benefit.)

You may request your account balance at any time, by submitting a request, in writing, to CCCERA. Since the information about your account is confidential, we must have your signature before we can release the amount. Include your address, and your employee number, in your request. Your balance will not be given to anyone but you.

Unlike some other retirement plans, you may not borrow against your retirement funds. Your contributions and accrued interest are your asset, but the law prohibits borrowing. While this may seem restrictive, leaving your funds with CCCERA until you retire protects against their loss, and preserves your secure benefit in retirement.

Benefit Security
CCCERA is a multi-billion dollar fund, underwritten and insured by the employers who participate. Employers in 1937 Act defined benefit plans are bound by law to cover the costs of your retirement benefit in the event of a major investment failure. Unlike many private pension plans, your contributions and interest are inaccessible to any organization or individual. CCCERA has consistently improved funding ratios, through meticulous accounting standards, stringent checks and balances, and a diversified investment policy.

Domestic Partnership
The California Domestic Partner Rights and Responsibilties Act of 2003 amends a variety of statutes, including Section 297 of the Family Code and sections of the 1937 Act. Requirements for partners are very specific. These rights come with legal responsibilities, and a formal registration requirement with the State of California. Section 3B of the Family Code (297) includes this statement:
". . . persons of opposite sexes may not constitute a domestic partnership unless one or both of the persons are over the age of 62."

A domestic partner of a CCCERA member who is (or will) retire will not qualify for a survivor continuance unless the partnership is registered with the Secretary of State, at least one year prior to retirement, or two years prior to the date of death of the member, and the survivor is 55 years old on or prior to the date of death. This qualification reflects Section 31760.1 of the 1937 Act regarding survivor benefits.

415 Limits
Section 415 of the Internal Revenue Service Code (IRS) limits the maximum benefits a member can receive from a defined benefit plan, such as CCCERA. For a few high income earners, this means earned benefits over these limits must be paid by the plan sponsors (employers), rather than CCCERA. These replacement benefits are, by tax law, the responsibility of the sponsors.

Member Record Confidentiality
In order to protect your privacy, changes to your account, such as a beneficiary designations, must be made in writing. Be aware, however, that CCCERA is a public agency. Certain demographic information is considered "public" by recent court rulings and statute, and is available by valid request. The following information is not public and will not be disclosed: a member's, beneficiary's, or annuitant's social security number, date of birth, address, telephone and facsimile numbers, email addresses, age at entry into service, spouse's and/or beneficiary's names, disability application, medical records, or other personal information provided by the member or beneficiary.

Retirement Account Garnishment
Your contributions on deposit with CCCERA and your retirement benefits generally are not subject to garnishment or lien while you are an active employee. For retirees, two exceptions exist:
1. A court may order CCCERA to pay a portion of your retirement benefit to cover a judgement for spousal or child support.
2. The IRS may levy your retirement benefit for payment of delinquent Federal income taxes.
Both of these circumstances might occur to retired members; they do not apply to active members.

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