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
[Top]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 SERVICE RETIREMENT FORMULA
[Top]If you meet one of the minimum qualifications, we will apply a formula to calculate your monthly retirement allowance. The formula is based on your:
Final Average Salary x
Retirement Factor x
Early Retirement Reduction Factor
short video, or review the Summary Plan Description
TIER 2 FACTOR TABLE
[Top]| 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
[Top]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
[Top]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.