Forms & Publications


Term Definition
Reasonable and Customary Charge A reasonable and customary charge is the prevailing charge made by physicians of similar expertise, for a similar procedure, in a particular geographical area of a community.
Reciprocal Benefit A reciprocal benefit is a deferred retirement benefit earned by a member while employed by the plan sponsor or a reciprocal agency. A reciprocal benefit is available only if he transitions employment from one reciprocal agency to another within six months after termination, and retires from both systems at the same time.
Reciprocal Retirement Systems Reciprocal retirement systems are California public retirement systems that by law or agreement have reciprocity with each other. They are: • The 20 county retirement systems in California governed by CERL • CalPERS • CalSTRS Public retirement systems that have full reciprocity agreements with CalPERS.
Reciprocity Reciprocity refers to the special relationship between a public retirement plan and certain other California public retirement systems. It was established to encourage career public service and to protect retirement benefits earned by employees under two or more systems. Reciprocity provisions apply to any member entering a retirement plan from a reciprocal system — or leaving a retirement plan and entering a reciprocal system — as long as he is employed by the reciprocal agency within six months after termination and elects to defer his retirement benefit with the prior system. Establishing reciprocity affects a member's: • Benefit eligibility • Contribution rate • Final compensation
Replacement Ratio A calculation of retirement income divided by current salary. Designed as a planning tool to identify future income.
Restoration A continuing allowance is a monthly benefit that is paid subsequent to the death of a member. If paid to a spouse or named beneficiary, the allowance is a lifetime benefit. If paid to a minor child, the allowance continues until the child is no longer eligible.
Retired Member A retired member is a former plan sponsor’s employee who has taken either a service retirement or a disability retirement.
Retirement Allowance -Continuing A continuing allowance is a monthly benefit that is paid subsequent to the death of a member. If paid to a spouse or named beneficiary, the allowance is a lifetime benefit. If paid to a minor child, the allowance continues until the child is no longer eligible.  
Retirement Allowance -Disability A disability retirement allowance is the monthly retirement benefit received by a contributory plan member who has been granted a service-connected or nonservice-connected disability retirement.   The member may receive a disability retirement allowance for life — unless the Board of Retirement terminates the allowance because the member is found to be no longer permanently disabled.
Retirement Allowance -Service A service retirement allowance is the lifetime monthly benefit received by a member who has retired after meeting the minimum age and retirement plan/reciprocal service requirements.
Retirement Allowance –Temporary Annuity Option The temporary annuity option is a retirement payment option offered to contributory plan members who are fully insured under Social Security, retire before age 62, and receive a service Retirement Allowance. It is designed to provide approximately the same total retirement plan/Social Security income before and after age 62.   Prior to age 62 a member's basic retirement allowance is increased by a percentage of the member's estimated Social Security benefit. At age 62 the allowance is then decreased by the full amount of the estimated Social Security benefit. (The estimated Social Security benefit used may be more or less than the actual Social Security benefit.)
Retirement Benefit Estimate A retirement benefit estimate is an projection of future retirement benefits based on a member's age, years of service, and final compensation. A member uses it to decide which retirement option to elect.
Retirement Service Credit Service credit earned as a plan sponsor’s employee (or as an employee of a public agency covered by a reciprocal retirement system) is used to calculate a member's retirement allowance. It is also used to determine eligibility for service retirement, nonservice-connected disability retirement, and active member death benefits.
Rollover Reinvestment of funds received from a maturing security in a new issue of the same or like security. In order to provide greater investment flexibility, an individual is permitted to shift his or her investment in one individual retirement plan to another without incurring any tax liability if done within a specific time frame. These shifts are referred to as rollovers and involve transfers from individual retirement accounts to individual retirement annuities, for example. Tax free rollovers are also permitted for the transfer of amounts from a tax-qualified plan to an individual retirement plan or to another tax-qualified plan. The amounts, frequency, and timing of tax free rollovers are restricted under the regulations.
Rollover A rollover is the transfer of a plan distribution from one qualified retirement fund to another, as defined by section 408(a) of the Internal Revenue Code.
Rule of 72 A rule of thumb for calculating the amount of time it will take for a dollar to double, at a specified rate of interest. The rule derives from the fact that at 7.2% annual interest, an investment will double in ten years. It is calculated by dividing the interest rate (converting to a whole number) into the number 72. The result is the number of time periods that it will take for a dollar to double. For example, at an 8% annual interest rate, it will take nine years for a dollar to double. Also may be used to estimate the interest rate, when only the time period is known.