what is Reciprocity? Reciprocity is an arrangement that allows you to link your current retirement benefits with another California public retirement system. It enables you to preserve and enhance your total system benefits. Essentially, it gives you portability by allowing you to leave your retirement contributions on deposit, regardless of your length of service, and to take a deferred retirement. what are the benefits of reciprocity? There are several advantages to establishing reciprocity, they include: If the system is an entry age based system, your contribution rate may be based on your age of entry into the first system thereby giving you a rate advantage. The service credit earned in one system may be used to meet the minimum requirements for vesting and/or retirement eligibility in another system. Your highest final earnable compensation from either system may be used by both systems to calculate your retirement benefit.
How do i Establish reciprocity? You must elect to establish reciprocity by informing the systems of your request: New SBCERA members or returning SBCERA members: Complete the appropriate section regarding reciprocity on the SBCERA Membership Enrollment Affidavit provided to you by your employer when starting employment with an SBCERA-covered employer. Current SBCERA Members: Submit a written request to SBCERA including the name of the system with which you wish to establish reciprocity. Members leaving SBCERA-covered employment: Complete a Request to Defer Retirement form and indicate the reciprocal retirement system you wish establish reciprocity. Upon submitting a request, SBCERA will work closely with your previous system to complete all necessary processes. SBCERA will inform you if, and when, reciprocity has been established. what are the requirements to establish reciprocity? You are eligible for reciprocal benefits if you change your active membership to and/or from SBCERA and another system that is covered under the California Employees Retirement Law of 1937 (or more commonly called the 1937 Act), CalPERS or any agency that has entered into a reciprocal agreement with CalPERS. You must also meet the following requirements: The time between leaving one public retirement system and entering another must not exceed 180 days. You must have a clean break in service from the previous system before entering the new one. For example, you cannot be on vacation time with the previous system while working at the new system. Your contributions from the previous system must be on deposit with that system, meaning you did not withdraw them when you terminated employment. You must be on deferred retirement status with the previous system. You cannot be retired.
which systems are eligible for a reciprocal agreement? SBCERA has reciprocal agreements with the other counties in California that are governed by the 1937 Act. These counties include: - Alameda - Contra Costa - Fresno - Imperial - Kern - Los Angeles - Marin - Mendocino - Merced - Orange - Sacramento - San Diego - San Joaquin - San Mateo - Santa Barbara - Sonoma - Stanislaus - Tulare - Ventura SBCERA also has reciprocal agreements with: California Public Employees Retirement System (CalPERS) California State Teachers Retirement System (CalSTRS) Other municipalities and special districts NOTE: The University of California Retirement System does not recognize SBCERA as a reciprocal agency or many of the other above-mentioned entities. How do i retire from reciprocal systems? You must retire concurrently from all systems on the same date. Please provide proper notification to all agencies of your intended retirement date in order to start the retirement process.
AM I Eligible? A Reciprocity Checklist If you can answer true, or yes, to each of the following questions you may be eligible to establish reciprocity: I am a member of another public retirement system in California. It has been less than six months since I terminated my employment from my previous employer, which participated in the retirement system. I am not working or still on the payroll for a participating employer from my previous retirement system. When I terminated employment, I did not withdraw my contributions from the previous system. I am not retired, receiving a retirement benefit from the previous retirement system. 348 W. Hospitality Lane, Third Floor San Bernardino, CA 92415-0014 Phone: (909) 885-7980 Toll Free Phone: (877) 722-3721 Fax: (909) 884-1904 Website: www.sbcera.org Important Notice Rev 8/2012 P1000 This brochure has been created in order to help members understand reciprocity. Every effort has been made to ensure the accuracy of the information offered. You should not rely solely on the information contained herein. In the event of any discrepancy between the information contained in this brochure and state and federal law, the state and federal law will govern. Additionally, the SBCERA By-laws take precedence over the content of this brochure.