SPECIAL EDITION 2019 Your Retirement Guide Photo by Greg Doyle
THE NOZZLE
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PRESIDENT’S MESSAGE Local 1014 Brothers and Sisters, On behalf of the more than 3,200 members of Los Angeles County Firefighters Local 1014, representing Firefighters, Paramedics and Fire Service Personnel, and your Executive Board, we are proud to present a Special Retirement Edition of our quarterly publication The Nozzle. We have over one hundred members retiring each year, while your Local 1014 Executive Board is working hard to fill positions behind them with new classes and new recruits, we also want to ensure that our members who are nearing the end of their career can maximize the hard-earned benefits they have work for over decades-long careers in the fire service. This issue is meant to be a guide to the process of retiring and provide you a map to begin the process with the Los Angeles County Employees Retirement Association (LACERA). In this issue you will find important information about the process of retiring and how to maximize the benefits that your Union has spent many years fighting for you to enjoy. In addition to this resource, we are also continuing to host retirement seminars at the Union Hall with LACERA to explain in detail some of the items highlighted in these pages.
Dave Gillotte President Los Angeles County Firefighters Local 1014
We hope that you find this newsletter to be informative and educational. We would like to thank Will Pryor and Rob Weaver and the team at LACERA for contributing to this edition to make it more informative for our members. For additional information, including power of attorney forms, guides to retirement, and a retirement estimate calculator, please visit the Local 1014 website under Member Resources—Retirement. Sign up for our weekly updates via the Local 1014 website at www.local1014.org to learn about our upcoming events including our retirement seminars. As always, feel free to contact me or our Executive Board Members at any time if you have questions, comments, or suggestions. I can be reached at daveg@local1014.org or 310-925-2358. In Solidarity, Dave Gillotte
President LA County Firefighters Local 1014
We want to ensure that our members who are nearing the end of their career can maximize the hard-earned benefits they have worked for over decades-long careers in the fire service.”
TABLE OF CONTENTS & UPCOMING EVENTS
INSIDE THIS ISSUE President’s Message Pre-Retirement Guide Retirement Timeline Disability Retirement Guide The Importance of Staying Involved and Planning Your Retirement: An interview with Will Pryor Guide to Understanding Your Venture Benefit: Rob Weaver
UPDATE YOUR CONTACT INFORMATION REMINDER: All Local 1014 members need to update their contact information with the Union in order to receive our weekly communications and important information including election ballots. Please call 310-639-1014 with your Employee ID number or Social Security number available to update the following member information: Name Address Phone and Cell Email Rank Station
RETIREMENT Continued GUIDE
PRE-RETIREMENT GUIDE
Most of our members now being hired by LACoFD have prior service time with a municipal agency or the military. There are big differences in how the time will affect your retirement depending on which agency you served the time and what you did when you left that previous agency. It is important to state that nobody at Local 1014, the Fire Department or the County itself can give you verified, final retirement advice - this can only be done by LACERA. Please consider this article as a guide through the LACERA process, as you get closer to buying time, or making any changes to your retirement plan The following information was taken from the Los Angeles County Employees Retirement Association (LACERA) Pre-Retirement Guide. To learn more please contact LACERA at 800-786-6464 or visits lacera.com to learn more about maximizing your retirement benefits with LA
RETIREMENT ELIGIBILITY
The first step on the road to retirement is determining whether you have met your Plan’s eligibility requirements. Although the requirements vary according to each Plan, the essentials are as follows: GENERAL PLANS A, B, C, AND D • Age 50 with 10 or more years of service credit • At any age with 30 years of service credit • Age 70 regardless of years of service credit PLAN E • Age 55 with 10 or more years of service credit • Age 70 regardless of years of service credit SAFETY PLANS A AND B* • Age 50 with 10 or more years of service credit • At any age with 20 years of service credit DEFERRED MEMBERS • Age 50 with five years of service credit and reaches the date on which the individual would have had 10 years of County service credit had he or she remained a full-time County employee • Any age (with five years of service credit) on the date the individual would have had 30 years of County service credit had he or she remained a full- time County employee (20 years for a safety member) BASIS FOR YOUR MONTHLY ALLOWANCE IN RETIREMENT • Age at Retirement • Years of Service • Final Compensation AGE AT RETIREMENT Contributory plans compute age in years and quarter-year increments. Plan E marks age in full years. YEARS OF SERVICE The total amount of your service credit, including any purchases of prior service and/or ARC, is one component of the calculation used to determine your LACERA retirement allowance. NOTE: Plan B member contributions end at 30 years. FINAL COMPENSATION In Plans A, B, C, and D, final compensation is based on the highest year or the average of any one year (consecutive 12-month period) of service. In Plan E it is based on the last three years of service, or any three higher 12-month periods, whether consecutive or not. SICK LEAVE BUY-BACK. You may be able to enhance your average monthly salary by selling back your sick and other unused leave. Under County rules, certain “excess” leave balances such as sick, holiday, and vacation leave not used during the calendar year or other specified period may be paid to the employee while working. (In other words, the County may “buy back” your unused vacation days and compensate you for that unused leave.) Certain “buy-back” income is pensionable, and thus may be included in final compensation when calculating an employee’s retirement allowance. PENSIONABLE LEAVE ITEMS MAY INCLUDE: • Vacation • Holiday • Non-Elective Leave • Sick Leave Utilizing this buy-back provision can boost your retirement dollar; however, specifics on buy-back vary. Check with your Department for information pertaining to your individual situation. NOTE: Overtime and termination pay are not included in your final compensation.
RETIREMENT GUIDE
CHOOSING A RETIREMENT DATE Choosing a retirement date is a big decision requiring careful thought and planning. It’s important to consider several factors before finalizing your date:
• Age and Birthday • Service Credit • Importance of March 31st
Your retirement begins on the date you select; your last day of work is the workday before your retirement date. AGE AND BIRTHDAY
In Plans A, B, C, and D, retirement benefits increase with each quarter year of age until the member reaches: • Age 55: Safety Plans A and B • Age 62: General Plan A • Age 65: General Plans B, C, and D In Plan E, retirement benefits increase once a year on the member’s birthday until the individual reaches age 65.
SERVICE CREDIT
Service credit, a measure used to calculate a member’s retirement allowance, is earned for each payroll period of County service. Two payroll periods equal one month of service credit. It is advantageous to retire in the latter portion of the month, so you can earn service credit for both payroll periods of that month. Part-time service credit will be converted to full-time service credit (i.e., five months of service at 3/5-time equals three months of service credit.) The County subsidy on retiree medical/dental insurance is based on the amount of service credit (excluding ARC and reciprocal service credit) a member has accrued. PLAN A, B, C, OR D MEMBERS EARN SERVICE CREDIT • For each payroll period of service in which they make contributions
PLAN E MEMBERS EARN SERVICE CREDIT
• For each payroll period in which they have earnings • While waiting for or receiving disability benefits under a County-sponsored plan
IMPORTANCE OF MARCH 31ST
If you retire on or before March 31 in a given year, you become eligible for the annual Cost-of-Living-Adjustment (COLA) that may be applied to your benefit on April 1 of that year. If you retire after March 31, you will not be eligible for this adjustment until the following April 1.
WHAT IS RECIPROCITY? Reciprocity is a special relationship that exists between LACERA and certain public retirement systems located in California. Reciprocal benefits are designed to “encourage career public service” by protecting retirement benefits when public service employees transfer to other public service jobs.
You are eligible for reciprocal benefits if you terminate your County service and leave your retirement contributions, if any, on deposit with LACERA. Your employment at one public agency must terminate before employment at the next public agency begins. Overlapping service, even service due to vacation or sick time, may cause disqualification for reciprocity. Within six months, you must become employed by another public agency covered by a reciprocal retirement system within California. Call LACERA for more information and to request a Reciprocity Package. HOW DOES PEPRA AFFECT ME? The Public Employees’ Pension Reform Act of 2013 (PEPRA) became effective on January 1, 2013. Since that date, LACERA has been governed by the County Employees Retirement Law of 1937 (CERL) and PEPRA. Both laws are contained in the California Government Code. PEPRA affects those with LACERA membership dates of January 1, 2013 or later through provisions affecting benefit formulas, the definition of what comprises pensionable compensation, limits on pensionable compensation, and other matters. The law also requires those members to pay 50 percent of the normal cost of benefits and strengthens the rules involving pension forfeiture for public employees and elected officials who commit job-related felonies. In January 2013, LACERA established two new retirement plans — General Plan G and Safety Plan C— for members with membership dates on or after January 1, 2013. Contributions for these plans are based on a single flat-rate percentage and are structured in accordance with the required 50/50 cost-sharing. A member’s entry age to LACERA is not considered. NOTE: Individuals with membership dates on or after January 1, 2013 who established reciprocity based on membership in a reciprocal system prior to 2013, and former members of LACERA who terminated membership and withdrew their contributions prior to 2013 and later return to County service and redeposit are considered prePEPRA members.
RETIREMENT Continued GUIDE
RETIREMENT TIMELINE TODAY
Create your own Retirement Benefit Estimate online at either lacera.com, or My LACERA.
Three to Five Years Prior to Your Retirement:
• Attend a LACERA Pre-Retirement Workshop. • Maximize contributions to your deferred compensation and/or savings plans. • Maximize your pensionable earnings; purchase service credit. • Speak with a LACERA Retirement Benefits Specialist. • Target a possible retirement date.
Six Months Prior to Your Retirement:
• Call LACERA at 800-786-6464 to request a Retirement Benefit Estimate and Election form. • Update your beneficiary record.
Two Months Prior to Your Retirement:
• Meet with a LACERA Retirement Benefits Specialist to assist you in preparing your retirement paperwork. The Specialist will provide you with enrollment forms for LACERA-administered retiree medical and dental insurance. • Bring the following documents with you: o Your completed Retirement Benefit Estimate and Election Form. o Your original Certified Marriage Certificate or Certificate of Registered Domestic Partnership.* o LACERA Beneficiary Designation Form and your beneficiary’s original certified birth certificate (for Unmodified+Plus or Options 2, 3, or 4). o Completed Direct Deposit application with a voided check from your checking account. - If you are a new retiree, we suggest enrolling in a Direct Deposit account prior to your retirement date to ensure your first retirement allowance is received according to schedule.** o Completed Tax Withholding form W-4/DE-4P. (Per IRS and California Franchise Tax Board regulations, if you do not fill out a withholding form, tax will be withheld as if you were married and claiming three withholding allowances.) • Notify your department of your retirement date. • Prepare your finances to complete any outstanding service credit contracts (contracts must be
Approaching Your Retirement Date:
• Notify your employer of your retirement date • You and your employer will receive an official Board-Approval Retirement Letter • DO NOT GO TO WORK ON YOUR RETIREMENT DATE!
45-60 Days After Retirement:
• Receive first retirement check (Note: Direct Deposit begins with second check)
Enjoy Your Retirement – You Earned It!
Photo by Bernie Deyo
DISABILITY RETIREMENT
DISABILITY RETIREMENT Information below taken from the LACERA Disability Retirement Guide. To learn more, call LACERA at 800-786-6464. Disability retirement is a benefit meant to provide you with a source of income in the event you become permanently sick or injured and are no longer able to perform the usual duties of your job. Disability retirement should not be viewed as a part of the normal retirement planning process; rather, it is the exception brought on by your inability to continue working the usual duties of your job. This guide is designed to explain LACERA’s disability retirement program and help you through the process of applying for it. ELIGIBILITY Members of LACERA’s contributory General Plans A, B, C, D, G and Safety Plans A, B, C who become permanently incapacitated from the performance of their usual job duties due to illness or injury are eligible to apply for a disability retirement allowance. Members of LACERA’s non-contributory Plan E are not eligible for a disability retirement allowance. However, if you are a Plan E member, you may be eligible for disability benefits under the County’s Long-Term Disability and Survivor Benefit Plan. Plan E members should check with their department for details regarding County-sponsored and/or County- administer insurance benefits. If you have withdrawn or at any time withdraw your retirement contributions, you are not eligible for disability retirement. The act of withdrawing your contributions means any pending disability application or disability appeals will be closed and you may not reapply. Disability retirement may be granted for two different types of disability, as follows: • Service-connected disability (SCD): Permanent disability resulting from an illness or injury substantially related to your County employment. • Nonservice-connected disability (NSCD): Permanent disability resulting from an illness or injury not related to your County employment. If you cannot perform your usual job duties due to a service-connected disability, there is no requirement of minimum years of service necessary to apply. If you cannot perform your usual job duties due to a nonservice-connected disability, you must have at least five years (60 months) of County (or County and reciprocal) service credit.
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DISABILITY RETIREMENT WHEN TO APPLY An application for a disability retirement must be submitted: • While you are still employed; or • Within four months after discontinuance of service; or • Anytime after discontinuance of service,provided that: - You are physically or mentally unable to perform your usual duties, that condition has been continuous from the last date of regular compensation, and you have medical evidence to substantiate this continuous disability; and - A delay in filing your application has not impaired LACERA’s ability to investigate your case. Anyone may apply on your behalf for a disability retirement, including someone in a position of authority from your department or personnel office, spouse, or domestic partner. However, in order for your application to proceed, you will need to fully cooperate with the disability retirement process. You may apply for a service retirement (based on age and years of service) while your disability case is pending. PRIOR TO SUBMITTING YOUR APPLICATION TO LACERA PLEASE REVIEW THE CHECKLIST BELOW. To apply for disability retirement benefits, the following documents must be fully completed and filed with LACERA’s Disability Retirement Services Division: 1.Application for Disability Retirement To be completed by member, attorney, or authorized representative 2.Physician Statement for Disability Retirement • All medical conditions for which you are claiming permanent disability must be supported by a Physician Statement. We will not accept your application for disability retirement for any conditions not supported by a Physician Statement. • Your treating or examining physician should state clearly that you are permanently incapacitated for the performance of your job duties. • If you are applying for multiple conditions in different medical specialties, please submit a separate Physician Statement for each specialty. Your physician should not certify medical conditions that are not within his/her specialty. •The physician statement must be signed no more than six months before the application is filed and accepted by LACERA. • Physician Statements received that indicate a temporary or partial incapacity or are not dated within six months will be rejected. 3.Authorization for Release of Medical, Psychological, Employment Records and Information, and Workers’ Compensation Records • Please complete Section A and read, sign, and date Sections B, C, and D. 4.Claims Against Third Parties Form • Please read the entire form then complete either Section 1 or Section 2, whichever applies, and complete, sign, and date Section 3. 5.Missed Medical Appointment Form 6.Notice of Attorney Representation Form, if applicable Application for Supplemental Disability Allowance, if applicable Power of Attorney/Conservatorship, if applicable
INTERVIEW WITH Continued WILL PRYOR
THE IMPORTANCE OF STAYING INVOLVED AND PLANNING YOUR RETIREMENT
An Interview with Will Pryor- Los Angeles County Employee Retirement Association (LACERA) Board of Retirement Member and Executive Board Member of the National Conference of Public Employee Retirement Systems (NCPERS) Will Pryor is currently a Battalion Chief for the Homeland Security/HazMat Section of the Los Angeles County Fire Department. Will previously served as a Local 1014 Director and is a current Executive Board Member and active Trustee to the National Conference of Public Employee Retirement Systems (NCPERS). He has been serving the community as a firefighter and paramedic and has offered his invaluable insight and experience as a Safety Member, elected by Safety Members, in serving on both the Board of Retirement and the Board of Investments. He has also served as Chair for both the Board of Investments and the Disability Procedures and Services Committee. He has testified before State and Federal committees on pension system stability, in defense of defined benefit pension plans. He has served also as a member of: the Council of Institutional Investors (CII), the International Corporate Governance Network (ICGN), the Los Angeles County Plan Administrative Committee, the Board of Directors, Centinela Hospital Medical Center.
Can you explain how the LACERA works? Why it is important for our members to have a voice?
Like any other non-profit organization, LACERA has a board of directors to which all staff must report. We have many responsibilities, but the most fundamental is to operate under the law, and with good industry and regulatory practices. LACERA is a bit unique, as the day-to day operations are relegated to the LACERA Board of Retirement but if there is an issue affecting the returns on our investments it is the domain of the Board of Investments (BOI). It’s a very unique arrangement, but allows the BOI to concentrate solely on investments. The board of retirement could not be more important to the benefits of our members. We manage over 160,000 members and need to get it right, we all have a lot invested in LACERA. As a 9-year member of the Board of Investments, I can say it was a challenge and very time consuming but very important to have union participation. It is important to have our stamp as firefighters on the values, ethics and overall principles that LACERA uses to invest their money. We don’t pick stocks, that’s for staff and consultants, but we do hire those that manage our money and that is very important to get right. How did you first get involved in LACERA?
I was asked to run for the board by my friend and former Local 1014 President Dallas Jones. It looked interesting and a unique way to give back, so I said yes. When should people start looking towards planning for retirement?
Retirement is a very complicated issue for all of our members. We are learning that it is multi-faceted between lifestyle, finances and psychology. For that reason, you really need to start as soon as possible. When you start as a rookie, put away as much as you can in 457 or other plans offered. Get quality financial advice. Dont believe anything stupid and don’t do anything stupid with your retirement money. Mid-career, get yourself settled. Where will you work? Will you promote before retirement? Where will you live? As you finish start preparing for the second biggest lifestyle change (kids being first). Retirement can be daunting because it is an unknown in many ways. Planning is everything. Be smart with your money, make the right lifestyle choices for a progressive decline in abilities, and get used to not being in the fire service, your now retired. What is the most important thing for our members to know about planning for retirement?
That it’s going to happen. You can’t ignore the inevitable issues that you will face when you retire because many are long term decisions. Many of us look forward to retirement, for a lot of reasons, but when it gets close we are not prepared. Get your start early - save, plan and be ready. How has the “Ventura” decision impacted our members and the calculation of their retirement income?
The “Ventura” decision in 2000 was a big win for our members, our retirement benefits were tremendously increased.
While it appears complicated, “Ventura” is actually fairly simple. It was a California Supreme Court decision that ruled basically that anything earned in one year as cash, should qualify as an “earned benefit” should be pensionable under County employment retirement law. This decision does not apply to CalPERS. Bonus pay such as paramedic, EMT, and longevity became immediately pensionable. More importantly it defined payback of Sick, Vacation and Holiday time as an in-service bonus, meaning if you earned it that year and you receive it in cash it should be pensionable. Later lawsuits made the distinction for time earned, banked and taken as Holiday, Vacation or Sick time. The courts found it to be “termination pay” and not eligible for sell back for final year compensation. One source of confusion for our members is that Ventura payouts (bonus pay, uniform, Vacation, Sick, Holiday time) does not increase the percentage that you retire. Now it simply adds to your final year cash compensation then that higher amount is paid due to the percentage you get based on years of service and age. Something that is often overlooked when planning for retirement is healthcare costs. Can you explain how this impacts our members retirement income?
I can’t explain enough the importance of a good health care plan upon retirement. The County health care plans (Tier 1 and Tier 2) are both excellent plans and will serve you well into retirement. After qualifying for full coverage after 25 years (of County or military time, not reciprocal time with CalPERS) you will receive 100% of coverage for your entire family (Tier 1) or the member and spouse after member dies (Tier 2). Both plans eliminate the most devastating financial hazard most retirees must negotiate - catastrophic health care needs. Of course, I would encourage everyone to join The Local 1014 Health Plan which provides the most comprehensive coverage for our members and serves as secondary insurance coverage once you go onto Medicare.
Photo by Randy Johanson
VENTURA DECISION
Guide to Understanding Your Venture Benefit: Rob Weaver
VENTURA DECISION
RETIREMENT Continued CHECKLIST RETIREE HEALTHCARE - INSURANCE After retirement you will receive an insurance packet containing healthcare information, including a form to request insurance enrollment forms. If you sign up for medical/dental/vision insurance at the Member Service Center, there is NO need for you to return the request form for insurance enrollment forms. Contact LACERA’s Retiree Healthcare Division for assistance: 800-786-6464, then press 1. Medical Plan New Enrollment/Change/Cancellation form - Must enroll within 60 days of retirement date. Dental and Vision Plan New Enrollment/Change/Cancellation form - Must enroll within 60 days of retirement date. Medicare Advantage Universal Enrollment/Election Form - If you are 65 years old, Medicare Parts A and B, HMO only; one form for each participant. DO NOT DATE this form. Medicare card or verification of Medicare eligibility/ineligibility - One for each participant. Both Parts A and B required. Birth certificate - Submit the original certified certificate for each eligible child’s enrollment. Coverage up to 26th birthday. Local 1014 Medical Insurance: For eligible Fire Department employees, call 310-639-1014.
RETIREMENT DOCUMENT CHECKLIST Retirement Benefit Estimate and Election Form. Original Certified Marriage Certificate or Certificate of Registered Domestic Partnership. LACERA Beneficiary Designation Form and your beneficiary’s original certified birth certificate Completed Direct Deposit application with a voided check from your checking account. Completed Tax Withholding form W-4/DE-4P. (Per IRS and California Franchise Tax Board regulations, if you do not fill out a withholding form, tax will be withheld as if you were married and claiming three withholding allowances.) If you were divorced during your County employment, you must provide LACERA with a conformed copy (with the court clerk’s filing date stamp and the judge’s signature) of all the pages of your Judgment of Dissolution and any other orders directing division of benefits. If you are in the process of a divorce at the time of retirement, LACERA cannot pay your retirement allowance until the Judgment of Dissolution of Marriage is final and a court order directing the community property division (QDRO) of your LACERA benefits is received. If you are a Plan E Member with service prior to 1983, or a contributory member selecting the Pension Advance Option—to insure accuracy, we recommend you submit your Social Security Statement. LACERA-administered medical and/or dental insurance enrollment forms. Original certified birth certificate for any dependents that will be covered under LACERA-administered health and/or dental insurance.
CONTACTS
Continued
IMPORTANT CONTACTS LACERA Los Angeles County Employees Retirement Association 800-786-6464 • FAX: 626-564-6155 • lacera.com • Email: welcome@lacera.com Office: 300 N. Lake, Pasadena, CA 91101-4199 Mail: P.O. Box 7060, Pasadena, CA 91109-7060 Empower Deferred Compensation Plans: 401 (k), 457 Horizons, Pension Savings Plan (Temp. Employees) 800-947-0845 Key Talk or 800-382-8924 • countyla.com Glendale Office: 655 N. Central Ave., Glendale, CA 91203 Employee Benefits Hotline (County) 213-388-9982 • dhr.lacounty.info CIGNA Optional Group Life Insurance (continuation) Options and Choices to Retiree • 800-842-6635 MetLife Group Variable Universal Life Insurance (continuation) Flex and Megaflex • 800-846-0124 COBRA (County Health Insurance Plan Continuation)• 213-388-9982 Long-Term Disability and Survivor Benefits Plan (County) 213-738-2143 • 213-738-2150 Sedgwick 800-786-8600 • sedgwickcms.com/calabasas Long-Term Care Insurance 626-818-2673 CalPERS 888-225-7377 • 655 N. Central, Suite 1400, Glendale, CA 91203 • calpers.ca.gov Medicare 800-633-4227 • medicare.gov Social Security Administration (SSA) 800-772-1213 • 877-255-1508 • ssa.gov
LOS ANGELES COUNTY FIREFIGHTERS LOCAL 1014 3460 FLETCHER AVE., EL MONTE, CA 91731 LOCAL1014.ORG