Employees entering public agency employment and a public retirement system membership for the first time on or after January 1, 2013 are Tier 2 members. A person becomes a member of SJCERA on the first day of employment in a permanent, full-time position with a participating employer.
Retirement Benefits Tier 2
Tier 2 General Member Maximum Formula: 2.5% at age 67 Minimum Retirement Age: Age 52 Tier 2 Safety Member Maximum Formula: 2.7% at age 57+ Minimum Retirement Age: Age 50 Final Compensation Period: Highest 36 consecutive months. Post-Retirement COLA: Up to 3% per year, based on actual changes in CPI
PEPRA Annual Compensation Limits:*
Members Integrated with Social Security: $124,180 in 2019 Members not Integrated with Social Security: $149,016 in 2019 * Once established in 2013, these limits are adjusted annually after each actuarial valuation based on changes in CPI. No earnings of a Tier 2 member in excess of the applicable limit may be used in determining contributions payable to SJCERA, or the member’s final compensation or benefits payable under SJCERA.
Pensionable Compensation Tier 2 – Compensation that can be included in the determination of retirement benefits for Tier 2 members excludes:
- Any compensation the Board of Retirement determines was paid to increase a member’s retirement benefit
- “In-kind” compensation or employer payments to third parties that was converted to cash to the member
- Any one-time or ad hoc payment to a member
- Any severance or other payment made in connection with separation from employment but is received by the member while employed
- Payments for unused leave regardless of when reported or paid
- Payments for overtime
- Any employer-provided allowance, reimbursement, or payments including, but not limited to, housing, vehicle, or uniforms
- Employer contributions to deferred compensation or defined contribution plans
- Any bonus
- Any other form of compensation the Board of Retirement finds inconsistent with the definition
Contributions to Retirement Tier 2 -
2019 Member Contribution Rates
General Membership Contribution Rate
Safety Membership Contribution Rate
The amount of compensation used to calculate retirement benefits for Tier 2 Members is limited under the California Public Employees’ Pension Reform Act of 2013 (PEPRA). Tier 2 Members pay contributions on earnings up to the annual PEPRA compensation limit. Member contributions will discontinue once earnings reach annual compensation limits and will resume with the first paycheck issued in the next calendar year.