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no longer be considered a member of SJCERA and you will relinquish any and all future benefits from SJCERA based on the withdrawn service.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 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.

 

 

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
2021 Annual Compensation Limit: * $128,059 (if you pay into Social Security)
$153,671 (if you do not pay into Social Security)
2021 Annual Federal Benefit Limit: ** $230,000

* The Public Employees Pension Reform Act (PEPRA) of 2013 limits the compensation that may be used to calculate retirement benefits for Tier 2 members. You will not pay contributions on earnings in excess of the applicable limit and compensation in excess of the limit will not be used to calculate your benefit. The compensation limits are adjusted annually based on changes in the CPI.

** 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.