CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION
  
 
 

On July 1, 1945, the citizens of Contra Costa County voted to establish a retirement plan for County and Special District employees under the provisions of the State of California’s County Employees’ Retirement Law of 1937 (CERL). The 1937 Act (including its extensive amendments), is the legal basis for CCCERA’s benefit tier structure.

Laws governing our institutions may seem permanently in place, but in reality, revision is common, depending on the problems and solutions required. The same is true for retirement system design, where a multitude of variables may impact the needs of employees, employers and retirees who depend on the strength of the system for future security.

There are two broad categories of active membership: General and Safety.

• General members are employed by Contra Costa County or special districts.  General members may have service in Tiers 1, 1E, 2, 3, and 3E. The "E" stands for "enhanced," which means the benefit formula is calculated with an age factor that gives you a higher benefit at retirement.
• Safety members are in active law enforcement, fire suppression and other “high risk” classifictions, designated by the Retirement Board. Safety members accrue service in the "3% at 50" enhanced Safety Tier "A", and in Safety Tier "C" for Deputy Sheriffs.

Currently, your retirement plan has eight benefit “tiers,” mandated by amendments to the ‘37 Act, and adopted by the County Board of Supervisors.

Benefit Tier Differences

Due to legislative changes designed to improve benefits, nearly all new General members hired after January 2006 are covered by the Tier 3E benefit structure. (Certain Special Districts are Tier 1 or Tier 1E.)

Your tier designation depends primarily on the benefit structure adopted by your employer.

The tier structure may seem confusing, but member benefits are all calculated using the same, basic formula. However, variables applied to the formula may be different for each tier.

  • Tier 1, 1E and Tier 3, 3E service retirement benefits are based on the same final average salary period (12 months), age factors, and cost-of-living percentages.
  • Tier 2 and Tier 3, 3E disability retirement benefits are based on more stringent guidelines than Tier 1.
  • Tier 2 service retirement benefits are based on a 36 month final average salary period.
  • For General members, Tier 1 contribution rates are the highest; Tier 2 contribution rates are the lowest, but the benefit is lower, too.

The tables below illustrate some of the benefit structure differences:

       
Tier
Final Average Salary used to Compute Benefits
Cost of Living (COLA)
Service Retirement Benefits
Disability Retirement Benefits
1,1E
1 year highest average salary 3% maximum per year Same as Tier 3, 3E Tier 1 Benefit
2
 3 year highest average salary 4% maximum per year Tier 2 Benefit Same as Tier 3
3,3E
 1 year highest average salary 3% maximum per year Same as Tier 1, 1E Same as Tier 2
Safety A 1 year highest average salary 3% maximum per year Safety service benefit Safety disability

Safety C

 3 Year highest average salary 2% maximum per year Safety service benefit Safety disability
   
 

Tier 1
(Not Enhanced)

General Tier 1 members hired before July 1, 1980, or by participating employers who did not adopt Tier 2 in July 1980.
Tier 1E and 3E: Enhanced
(2% at 55)
General Tier 1 and 3 members who will retire between the ages of 55 and 62.25 years of age, and who have ten or more years of eligible service. The "2% at 55" retirement age factor is used to calculate your benefit until age 62.25. After that age, the factor reverts to the original Tier 1, non-enhanced rate, which assures you the highest benefit at retirement.
Tier 2 Members hired after August 1, 1980 and those hired before August 1, 1980, who elected transfer to the Tier 2 Plan. (Tier 2 was eliminated for future service in October 2002 for active members. County and District Tier 2 members were transferred to Tier 3E.)
Tier 3
(Not Enhanced) 		Tier 3 was originally an elective choice for General Tier 2 members who had 5 years of eligible service. As of 2002, most employees entering the retirement system will be Tier 3E, unless they are Safety personnel.

Safety A:
Enhanced
(3% at 50)

 Safety members with 10 or more years of continuing service, who retire on or after age 50, will receive pensions calculated with the enhanced benefit factor (3% at 50).
Safety C: Enhanced (3% at 50) Safety Tier C pertains only to Deputy Sheriffs hired after 1/01/2007, and is scheduled to "sunset" in 2010, unless extended by statute. Pensions are calculated with the enhanced benefit factor (3% at 50) but the Final Average Salary period is 36 months.

Safety:
Not Enhanced
(2% at 50)


Safety members with 10 or more years of continuing service who retire on or after age 50, will receive pensions calculated with the 2% at 50 retirement age factor. (Some Safety employers have not adopted enhanced benefit formulas for their employees.)
 
 
For CCCERA members, the 1937 Act contains many statutes and amendments about tier structure. Here are a few:
31462317513175531755.231870

Retirement Service Credit