Returning to Work Before Retirement

If you are rehired by a participating employer after you terminated employment, you will rejoin CCCERA, unless you are rehired in an ineligible position. Service credit starts accruing just as it did during your previous membership: the first day of the month following your rehire date to an eligible position (the first time a contribution is taken from your pay check).

If you took a refund when you left, you have two choices:

1. Redeposit the contributions and interest you withdrew, thus re-establishing your retirement account and your original service credit,


2. Do nothing, and start your service credit from your current membership date.

Deferred Members Returning to Membership
If you deferred your retirement benefits when your earlier employment ended (left your contributions and interest in your account), your funds are still earning interest. The contributions and service credit you earn after rehire will be added to your deferred service credit to build a higher benefit when you retire.

1. Your contribution rate will be the rate for your original age at entry into the retirement system.
2. You will return to your current employer's benefit tier. (An example: You left as a Tier 2 member. Since you departed, Tier 2 was eliminated. When you return to work, your new service will be in Tier 3E.)

For more about terminating employment and deferment, click here.
Redeposits after Re-employment

A redeposit re-establishes your retirement account to pre-termination levels. You return the contribution amounts you withdrew, plus the interest the funds would have earned during your absence from membership. Once these funds are redeposited into your account, your original service credit is reinstated.

Redepositing can be a good financial decision, because it restores your retirement service credit. As your career continues, you have these credits to build on, giving you a higher benefit when you retire. (Higher service credit at retirement equals a better benefit.)
For service you are restoring, you must redeposit your contributions, plus all the interest that would have accrued on the amount if your funds had been left at CCCERA. (You do not have to replace the funds your employer contributed for you. Those funds are still on deposit with CCCERA.) Your redeposit will reinstate your previous service credit in whichever tier you left, regardless of your current membership tier.
Regardless of the option you choose, if your funds are left on deposit with CCCERA, you will be paid interest on your account until you withdraw the money in a lump sum, or begin taking a monthly benefit.
Redeposits After a Domestic Relations Order
If you are required to divide accumulated service credit due to a divorce or domestic partnership dissolution court-ordered settlement, you may be able to purchase the service credit awarded your ex-spouse or registered domestic partner, with a redeposit.

Since separate accounts are created for both individuals, redepositing contributions and interest may be possible for both member and/or non-member (former spouse/domestic partner) in order to restore each account to pre-DRO levels, under very specific circumstances.

For example: non-members may only redeposit contributions and interest previously refunded to the member, and considered community property.

Active Members may redeposit contributions and interest forfeited to the non-member, only if the non-member takes a refund. The active member must redeposit the funds within 5 years of notification that a refund was taken, and no later than 120 days after retirement.

If a non-member takes a refund of "court awarded" contributions and interest, the non-member permanently relinquishes all rights to any retirement benefits, potential redeposits, or service credit purchases.

Each dissolution is different, so be sure to speak with a retirement counselor to verify your options.
Redeposit Payment Options
Redeposits must be for the entire amount of previous service with post-tax funds. However, you can pay the amount owed in installments. You can redeposit your funds by:
  • Lump sum payment,
  • Payroll deduction,
  • A combination of both methods,
  • A trustee-to-trustee transfer (a "rollover")

If you are unable to complete your redeposit for any reason (including disability or death), the contributions plus interest you paid into your account will be refunded and service credit will not be reinstated.

The maximum time frame for redeposit contracts is 5 years, regardless of the amount of service to be reinstated. However, your contract cannot extend longer than the time of the original service you are redepositing.

You can decide to redeposit any time up to 120 days past your date of retirement, as long as the redeposit is completed before the 120 day window closes. For more information CLICK HERE for the Service Purchase pamphlet.

A rollover is a transfer of your contributions and interest from one "qualified" plan into another "qualified" retirement plan or IRA (Individual Retirement Account) A direct rollover means the money transfers directly from plan to plan, without ever passing through your hands, thus deferring possible tax liability until you withdraw the funds later. A "qualified" retirement plan means a plan approved by the IRS (Internal Revenue Service) under Code 401(a), 403(a) or 457(b).
PLEASE NOTE: Employer plans are not required to accept rollovers. Be sure to find out what types of distributions your designated plan accepts, and what restrictions on subsequent distributions may apply, before you make arrangements.
FOR EXAMPLE: CCCERA ONLY accepts 457 trustee to trustee transfers. For more information about trustee to trustee transfers, please click the link above to read the Service Purchase pamphlet.
Contact the Retirement office to find out what your redeposit will cost, and to discuss your payment options.
Retirement Readiness
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