Deferred Members

Deferred Retirement

Deferred Retirement Allowance

Some members do not qualify for a retirement allowance when they terminate from employment.  They may not be old enough or have attained enough covered service.  SJCERA’s Deferred Retirement allows them to leave their contributions on deposit and retire at a future date.
 
To qualify for a Deferred Retirement Allowance, you must leave your contributions on deposit with SJCERA when you terminate employment.
 
During the deferred period you may change your mind at any time and withdraw your member contributions, unless you entered a reciprocal system. However, if you do so, you will no longer be considered a member of SJCERA and you will relinquish any and all future benefits from SJCERA based on the withdrawn service.
   
Eligibility for a Deferred Retirement Allowance

If you had five years or more of service when you deferred, you will be eligible to begin receiving your Deferred Retirement Allowance when you are:
 

Tier 1  

Tier 1 General Member Benefit Formula: 2% at age 55 ½
Tier 1 Safety Member Benefit 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: *$270,000 in 2017
$265,000 in 2016
*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.

 

Tier 2

Tier 2 General Member Formula: 2% at age 62
Minimum Retirement Age: Age 52
Tier 2 Safety Member 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
* 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.