Retirement Benefits Tier 1 - Employees who will enter SJCERA membership on or before December 31, 2012, or have incoming reciprocity with another public retirement system are members of SJCERA Tier 1.
Tier 1 General Member Maximum Formula: 2.611% at age 62 Tier 1 Safety Member Maximum Formula: 3% at age 50+ Minimum Retirement Age: Age 50 Final Compensation Period: Highest 12 consecutive months Post-Retirement COLA: Up to 3% per year, based on actual changes in CPI Annual Federal Compensation Limit: $280,000 in 2018* *No earnings of an employee who became a member of SJCERA Tier 1 after Jan 1, 1996, that exceeds this limit may be used in determining contributions payable to SJCERA, or the member’s final compensation or benefits payable under SJCERA.
Compensation Earnable Tier 1 - Compensation that can be included in the determination of retirement benefits from SJCERA excludes:
- Any compensation the Board of Retirement determines was paid to enhance a member’s retirement benefit
- “In-kind” compensation or employer payments to third parties that was converted to cash to the member in the final compensation period
- Any one-time or ad hoc payment to a member but not to all similarly situated members in the member’s grade or class
- Payments for overtime
- Any terminal pay and unused leave payoffs that exceed what may be earned and payable in the one-year final compensation period
Contributions to Retirement Tier 1 – Tier 1 member contributions are based upon membership classification, representation unit, and entry age into the system.
Your entry age is the age you are when you enter SJCERA membership. If you were more than 6 months past your birthday when you entered membership, SJCERA rounds your actual age up to the next age. For example if you entered SJCERA membership at age 30 and 7 months, your official entry age would be 31.
Your contributions are deducted from each biweekly paycheck you receive. Please click on the table below that applies to your Employer and Bargaining Unit to see your 2018 Member Contribution Rates.
2018 Member Contribution Rates – TIER I GENERAL
2018 Member Contribution Rates – TIER I SAFETY