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 2021 Annual Federal Compensation Limit: * $290,000 2021 Annual Federal Benefit Limit: ** $230,000
* The Internal Revenue Code Section 401(a) (17) imposes limits on compensation that may be used to calculate retirement benefits for individuals who became a member of SJCERA Tier 1 after January 1, 1996.
** The Internal Revenue Code Section 415(b) limits the annual benefit amount that SJCERA can pay to a retiree. This limit is based on your age at retirement and is generally lower for members who retire under age 62. However, the benefits of retired employees of sheriff's and fire departments with at least 15 years of service credit and recipients of survivor and disability allowances are not age-adjusted; they are tested against the full 415(b) dollar limit. SJCERA employers have a replacement benefit plan for Tier 1 members affected by 415(b) limits that pays the difference between the IRC limit and the benefit you have earned.
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
- Payments for additional services rendered outside of normal working hours, whether paid in lump sum or otherwise
- 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. Leaving active membership and becoming a deferred member may affect your entry age.
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 2021 Member Contribution Rates.
2021 Member Contribution Rates - TIER I GENERAL
2021 Member Contribution Rates - TIER I SAFETY