Kern County Employee Benefits: Retirement Plan

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County of Kern Retirement Plan

	Section 401(a) Defined Benefit Retirement Plan Retiree Health Plans Social Security Contribution Deferred Compensation

	SECTION 401(a) DEFINED BENEFIT RETIREMENT PLAN

	Eligibility
	An employee automatically becomes a member of the Kern County Employees' Retirement Association ("KCERA") after appointment to a permanent position of fifty percent or more of the regular standard hours required.
	Membership
	Retirement membership begins on the first day of the next payroll period following employment. Due to this waiting period, service credit for retirement purposes may differ from service earned for County seniority purposes. An employee is classified as either a safety member or a general member. Safety members are those members employed in active law enforcement, active fire suppression, probation, or criminal investigations. Safety members accrue service under the benefit provided by GC 31664.1, which is commonly referred to as "3 percent at age 50." All other members employed by Kern County are general members of Tier I or Tier II.
	Benefit Tiers
	Currently, KCERA general members employed by Kern County have two benefit tiers. In most cases, your tier depends on when you became a KCERA plan member. General members with eligible employment prior to October 27, 2007 are enrolled in Tier I, provided by GC 31676.17 ("3 percent at age 60"). All other general members accrue service under Tier II, provided by GC 31676.01 ("1.62 percent at age 65").


	Social Security Integration In general, the benefits of the Retirement Association are integrated with the benefits provided under the Federal Social Security Act. Beneficiary Designation Retirement members must name a beneficiary for survivor benefits. Married members or members who have established a domestic partnership according to California State Law normally designate their spouse or registered domestic partner as their beneficiary. A beneficiary must be a person who has an insurable interest in the member's life. The beneficiary cannot be a living trust or charitable organization. However, the member may designate his or her estate as beneficiary. Beneficiary designation can be changed at any time and should be updated in response to changes such as birth, death, marriage or divorce, domestic partnership registration or termination, or if the named beneficiary's mailing address changes. Contributions Contributions to fund the retirement benefits come from three basic sources: contributions from the employee (amount varies depending upon age at entry, salary and/or classification), contributions from the County, and investment earnings of the retirement fund. Credit For Previous Service An employee may purchase and receive retirement service credit in KCERA for any Kern County or participating Special District service that was rendered prior to becoming a member. This includes extra-help, per diem, temporary and part-time service. Members may not purchase and receive service credit for employment as an independent contractor or employment eligible to participate in another retirement system. In addition, eligible employees may be able to purchase and receive credit in the Retirement Association for prior service with a governmental agency located within California or for service with any branch of the federal government. Retirement For Years of Service General Members - Any general member with ten years of qualifying retirement service who is age fifty or older, or with thirty years of retirement qualified service regardless of age, is eligible for service retirement. Safety Members - Any safety member with ten years of retirement qualified service who is age fifty or older, or with twenty years of retirement qualified service regardless of age, is eligible for service retirement. Age 70 - Any member having attained the age of 70 may retire for service regardless of their years of retirement service credit. Members who are ready to retire should notify the Retirement Association at least sixty days prior to retirement. Members eligible for Social Security and/or Medicare should also notify the Social Security office ninety days prior to retirement. Retirement for Disability/Death If a retirement member becomes permanently disabled and unable to perform the duties of his or her specific job, the member may apply for disability retirement. Employee death before retirement with less than five years of retirement qualified service: The beneficiary will be entitled to receive the basic death benefit, which consists of the member's accumulated contributions plus interest and one month's salary for each full year of service, up to a maximum of six months of salary. Employee death before retirement with five years or more of retirement qualified service: The surviving spouse will be entitled to receive, for life, a monthly allowance equal to sixty percent of the retirement allowance for which the member would have been entitled if he or she had retired for a nonservice-connected disability on the date of death. This information is a summary of some of the retirement benefits available to County employees. Please refer to the Retirement Benefits Information Booklet available from departmental personnel, the KCERA office at (661) 868-3790 or the KCERA Web site at www.kcera.org.
	RETIREE HEALTH PLANS



	County group health coverage may be purchased by County retirees receiving a monthly pension check from the Kern County Employees' Retirement Association (KCERA). Cost is based upon the plan selected and how many persons are covered. For eligible retirees, a portion of the cost is paid by the County in the form of a health insurance stipend ($39.75-single, $53.69-two party, or $61.50-family per month). Additionally, eligible employees participating in the Retiree Health Premium Supplement Program ("RHPSP" with payroll deduction "Retire Hlthben Supp") who retire between the ages of 50 and 65, with 20 or more years of qualifying County service, may be eligible to receive a fixed amount equal to 50%-100% (depending on years of service) of the initial cost of a single SAC premium. Any RHPSP participating employee, with five or more years of County service, who is granted a service connected disability (pursuant to the County Employee's Retirement Law of 1937) effective on or after January 1, 1997, will become eligible for the full current benefit, regardless of age.
	SOCIAL SECURITY CONTRIBUTION


	Employee Contribution The County of Kern withholds 6.2% for Social Security and 1.45% for Medicare from employees payroll warrants. County Contribution The County matches the employee's 6.2% for Social Security (FICA1) and 1.45% for Medicare (FICA2). Combined with the employee contribution, there is a total of 12.4% of covered wages contributed to each employee's Social Security account.
	DEFERRED COMPENSATION

	The Kern County Deferred Compensation Plan provides all of the following features: Payroll Deduction, Deferred Taxable Income, Tax Deferred Earnings, Supplement to Retirement Programs, 24 Hour Toll-free Phone Access for Unrestricted Investment Options, Transfer and Account Information, Re-balancer and Dollar Cost Averaging From Existing Account Options, Dollar Cost Averaging - Continuous Investments Over Time, Well Diversified Investment Portfolio Options, On Site Group and Individual Meetings. Quarterly Performance is provided for each investment option.

	The maximum regular deferment in 2007 is $15,500. For additional information and/or enrollment materials, call the Great West Life representative, Susan Leedy at (661) 868-3467.

Last Modified
10/31/2007

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