Retirement for Tier 2 Members

When you meet the minimum qualifications for a Service Retirement, you will also qualify for a lifetime spousal/domestic partner continuance, an annual cost-of-living adjustment (up to 2%) based on the Consumer Price Index, and a death benefit (maximum $20,000). You may also qualify for a health plans subsidy. With these valuable benefits, it is important for you to understand the minimum requirements as you progress through your career at the Department.

SERVICE RETIREMENT QUALIFICATIONS
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To qualify for a service retirement under Tier 2, you must meet the following:

  • You are at least 60 years old and you have at least 5 years of continuous Department Service with the Plan immediately prior to reaching eligibility, OR

  • You are at least 60 years old and you have at least 10 years of Qualifying Service immediately prior to reaching eligibility, OR

  • You have 30 years of Qualifying Service, regardless of your age, OR

  • You are receiving Permanent Total Disability Benefits from the Plan, regardless of your age.

TIER 2 FACTOR TABLE
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AGE at Retirement
    <55 years old 55-59 60-62 >63 years old
Retirement Factor
Early Retirement Reduction Factor
1.5% Unreduced Not Applicable Not Applicable Service Retirement with 5yrs DS or 10yrs QDS Not Applicable
2.0% Reduced Service Retirement with 30yrs of QDS Service Retirement with 30yrs of QDS Not Applicable Not Applicable
2.0% Unreduced Not Applicable Service Retirement with 30yrs of QSC Service Retirement with 30yrs of QDS Service Retirement with 5yrs DS or 10yrs QDS
2.1% Unreduced Not Applicable Not Applicable Not Applicable Service Retirement with 30yrs of QDS

QDS = Department Service combined between the Plan and LACERS
QSC = Service Credit combined between the Plan and LACERS
DS = Department Service with the Plan only (does not include purchases of service credit)
SC = Service Credit with the Plan only

CAP ON TIER 2 MONTHLY PENSION AMOUNT
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In Tier 2, there is a cap on your monthly pension amount, which is limited to 80% of your Final Average Salary, regardless of how much Service Credit you have earned or purchased with the Plan.

VESTING
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If you don't qualify for a Service Retirement, you may still qualify for a Vested Retirement. To be eligible for Vesting, you will need to have either 5 years of Service Credit with the Plan or 15 years of Qualifying Department Service at the time that terminated service.

To get a better understanding of Vesting, please see the section Vesting.