Active Employees
The Layoff Process and Retirement Benefits
Concerned about potentially being laid-off? Depending on your
years of City Service and Tier Membership, there are different
options available regarding your retirement benefits.
Note: Please contact LACERS immediately
if you receive a layoff notice to review your options.
1. What happens to my retirement contributions when I am
no longer employed by the City?
LESS THAN FIVE YEARS OF CONTINUOUS CITY SERVICE
If you are full-time and have less than five years of Continuous
City Service, you may:
- Leave your contributions on deposit with LACERS;
- Take a refund of your contributions plus accrued interest; or
- If you take a refund of your contributions, LACERS is
required to withhold taxes and you may also be subject to
additional tax penalties.
- Roll your funds over to another qualified retirement plan.
If you withdraw or roll over your contributions, and also
participate in the LACERS Larger Annuity Program, you will also
be required to withdraw or roll over those funds.
MORE THAN FIVE YEARS OF CONTINUOUS CITY SERVICE, PART TIME AND
RECIPROCAL MEMBERS
If you are full-time and have more than five years of Continuous
City Service, were a part-time contributing member of LACERS, or
have vested status through Reciprocity, you may:
- Apply for retirement, if you are eligible (See Eligibility
under Understanding Your Retirement at LACERS.org) ;
- Leave your contributions on deposit with LACERS until you are
eligible for a Deferred- Service Retirement;
- Take a refund of your contributions plus accrued interest; or
- Roll your funds over to another qualified retirement plan.
If you withdraw your contributions and also participate in
the LACERS Larger Annuity Program, you will also be required to
withdraw or roll over those funds.
2. How long may I leave my funds on deposit with
LACERS?
Your funds can remain on deposit with LACERS until you reach age
72, at which time the Internal Revenue Code requires you begin
withdrawing funds from your account (required minimum
distribution) or incur tax penalties.
3. If I am a full-time employee, and have less than five
years of Continuous City Service, is there anything I can do to
meet the five-year Continuous City Service requirement to qualify
for a retirement benefit?
If you worked for another California governmental agency, you may
qualify for reciprocity which may allow you to use your combined
years of service from both agencies toward vesting and/or
becoming eligible for a retirement allowance. If you have
received a layoff notice, but your actual termination date has
not passed, you may be able to purchase City Service to help you
reach the five years of Continuous Service requirement. (See
LACERS.org for information on Reciprocity rules and Service
Buybacks)
4. Can I continue to pay my Family Death Benefit Plan
(FDBP) premiums after I separate from City service?
No, you must be an active City employee to participate in the
FDBP program. However, should you return to City service in the
future, you may resume your participation in the FDBP program.
5. If I’m officially notified that I will be laid-off,
but not yet terminated, can I still retire?
If you are eligible for a service retirement, you may be able to
apply after you receive your layoff notice, but before the actual
termination date.
Please refer to eligibility requirements based upon your Tier
Membership located here.
6. When I’m officially terminated, can I still
retire?
If you are off the active payroll and you are eligible to retire,
you may immediately apply for a Deferred-Service Retirement.
Please refer to eligibility requirements based upon your Tier
Membership located here.
7. I think I may qualify for a disability retirement
benefit, what are the eligibility requirements?
If you became physically or mentally disabled while an active
LACERS member and believe you may qualify for a disability
retirement, please contact us so we can review your options.
8. Will purchasing service credit change my layoff
status?
No. Purchasing service credit will only enhance your retirement
benefits or help you to meet eligibility requirements for a
retirement.
9. If I withdraw my retirement contributions, plus
interest, will I be eligible for any type of retirement benefit
from LACERS?
No. Once you withdraw your retirement contributions, you forfeit
your rights to any previously earned or potential future
retirement benefits. However, if you later return to City
service, you may be allowed to redeposit your contributions, plus
interest, and may be able to qualify for a benefit later.
10. What other resources are available to me during this
time?
Please visit the City of Los Angeles’ Personnel website at
https://per.lacity.org/LayoffProcess.htm
to access a variety of resources and more information about the
layoff process.
City Separation Incentive Program (CSIP)
Who do I contact if I have questions about my CSIP
retirement application?
Please email LACERS.CSIP@LACERS.ORG.
What is the email address that will be sending our
electronic notifications?
Emails during this CSIP process will be sent to you via
LACERS.CSIP@LACERS and Hightail.com.
I used my work email address on my application. Do I need
to change it to my personal email?
Yes. Please send an email to LACERS.csip@LACERS.org and provide
your personal email address. You will also need to fill out a
Change of Email Address Form.
Will information be sent to both my City email and
personal email?
Information regarding CSIP will be sent to the email you have
provided. If you need to change your email address or want to
verify that we have the correct email address, please email
LACERS.CSIP@LACERS.org.
Can I change my MyLACERS account to my personal email
address on my own?
Yes. The option to change your email address in your MyLACERS account is
in the profile section. LACERS recommends you have a personal
email address on file so that you can access MyLACERS once you
retire.
How long will it take to hear from LACERS regarding a
retirement effective date? How will the retirement dates be
chosen?
Approved CSIP participants will be scheduled for retirement based
on the number of applications LACERS is required to process and
when the participant meets the criteria for normal retirement
eligibility. All applicants received notification of their
retirement effective date on October 31.
Will I be able to complete this process on an iPad or
iPhone as I do not have a computer?
Yes. You may also want to ask your Department for any assistance
they may provide.
How soon can I expect communication from LACERS regarding
the CSIP retirement process?
You will receive two communications by the end of October 2020,
confirming your CSIP application and your retirement effective
date. You will then receive your retirement packet
electronically via the email you provided four (4) to six (6)
weeks before your retirement date unless you specifically
requested that LACERS mail it to you.
Will all 1,300 CSIP participants be notified on
10/31/2020 of their retirement effective date or just those who
are retiring in November and December?
Yes. All members will be notified by 10/31/2020 via email (if we
have your email on file) and by USPS mail.
When will the last batch for CSIP members
retire?
Retirements are expected to go until approximately May 2021.
How is the $80,000 going to be distributed?
LACERS is not involved in the CSIP compensation process.
Please contact the CAO for assistance.
If I use sick time at 75%, does that affect my retirement
compensation rate?
No, it does not have an effect on your compensation rate.
I am at home and am almost out of sick and vacation
time. Can I get an earlier retirement date for medical
reasons?
Please contact the City
Administrative Office as they determine the priority in which
employees retire under the CSIP.
If they are going to retire us in May 2021, will we get
96 hours sick leave at the beginning of 2021?
Sick time is paid by the Controller’s office please contact them.
If my retirement date is scheduled for next year, will
pay raises be considered for my payout and retirement
allowance?
Yes. Your highest consecutive 12 months of salary will determine
your retirement allowance. Please check with your Department
regarding any payouts for which you may be eligible.
How is my retirement allowance taxed?
Your retirement allowance is subject to both Federal and State
taxes. Please consult a tax professional for additional
information.
When will I receive my first retirement check?
You should receive your first retirement check at the end of the
month following the month of your retirement provided you
returned your complete retirement packet on time. You can check
the payment schedule here.
Is my LACERS monthly retirement allowance deposited into
the same account that I have now?
Your active employee direct deposit authorization does not carry
over to LACERS. You will need to complete a new Direct Deposit
Authorization form when you retire.
When do I get my first LACERS’ COLA?
COLA adjustments are applied in July of each year and are
reflected on the benefit payment for that month. COLAs will be
pro-rated for anyone who was not retired for the entire year
prior to the COLA being applied. For more information on the
COLA, click here.
Will my new sick time accrual, vacation and/or overtime
be paid upon retirement or later?
Any sick, vacation or overtime accrual is paid by your employing
department. Please contact your employing department for
information on these payouts.
I recently withdrew my application in order to apply for
CSIP. Can I still use my previously submitted paperwork?
No, you will need to submit a CSIP retirement package.
Can I change my mind about participating in the CSIP
after I am approved for the program?
LACERS will receive the roster of approved CSIP participants
after the close of the rescission period. Everyone on the
approved roster will be locked in and required to retire on the
date determined by LACERS.
Will I receive my retirement package in US Postal
Mail?
You will receive your packet electronically unless you arrange
for a packet to be mailed to you approximately four (4) to six
(6) weeks before your assigned retirement effective date.
Who can I contact if I have general retirement
questions?
You can contact LACERS Member Service Center at (800) 779-8328 or
send your question via email to Lacers.Services@Lacers.org.
How will my retirement application be processed? Will I
receive individual counseling?
Due to the expected large volume of applications, individual
counseling will not be possible. A Retirement Package, including
the CSIP retirement application, an estimate letter with monthly
retirement allowance options, the list of required documents, and
all ancillary retirement paperwork will be sent via email or US
mail to the CSIP participant. The retirement package will also
include a link to a video on how to complete the retirement
documents and an invitation to an optional question and answer
webinar.
Will there be a one-on-one session with LACERS’ staff to
answer questions?
There will be a group Zoom Q and A Session made available to you
where you can ask questions related to your retirement packet.
You must first view the YouTube video on completing your
retirement forms, then register for the Zoom Q & A session where
you will receive the access link.
Do I have an assigned Counselor to follow up with once I
submit my retirement application packet to LACERS?
Yes. Once your retirement application packet is received a
counselor will be assigned to your case.
I already received my CSIP packet and I have questions
about completing it. Where can I find more information?
Please visit our YouTube channel and
watch the video listed in your retirement packet.
Additionally, a Zoom Counseling Q and A session will also be
scheduled where you can ask additional questions approximately in
(X) weeks after you have received your packet.
Will my retirement counselor inform me of any missing
documents?
Yes. If there is anything missing or incomplete, your counselor
will contact you.
How long will I be given to complete the retirement
application packet?
You will have two (2) to three (3) weeks to complete your
retirement application packet.
If I turn in my packet late and my payroll set-up is
delayed, will I receive compensation from my retirement effective
date?
Yes. Failing to return your packet in the time prescribed only
delays when you will receive your first retirement check. You
will still be retired on the date you were assigned. Your first
check will be inclusive of any allowance due to you based on your
retirement effective date.
I submitted documents to LACERS before and LACERS
acknowledged receipts of those documents. Do I need to
resubmit?
Yes. Please resubmit all required documents with your retirement
packet.
Where do you get the LACERS Special Durable Power of
Attorney form?
Please access the LACERS
Special Durable Power of Attorney form.
Am I responsible for informing my Department that my CSIP
application was approved?
The CAO informed all department of approved CSIP participants.
LACERS will inform your employing Department of your assigned
retirement effective date.. You do not need to notify them
yourself. All Departments will be notified by October 31, 2020.
Can I still purchase Service Credit to increase my
retirement allowance?
All CSIP applicants with identified service credit to purchase
should submit a buyback application as soon as possible after
receiving notification they have service time eligible for
purchase. However, be advised, there is no guarantee the service
credit purchase request will be processed prior to your CSIP
retirement date. Only service credit purchases for City time will
be considered for processing due to non-City service credit
purchases requiring 8-10 months to complete.
When do I have to pay off my service credit purchase to
have it count toward my retirement allowance?
The purchase must be made prior to your CSIP retirement date and
must be paid via lump sum payment or a rollover from an eligible
retirement plan.
If you choose to do a rollover, you are responsible for ensuring
the timely transfer of funds to LACERS prior to your CSIP
retirement date.
I have reciprocity with another governmental
agency. Will that reciprocal time be used for CSIP
eligibility?
Reciprocal time will be used to meet CSIP eligibility
requirements, however, only City Service will used in the
calculation of the CSIP payment.
I have questions about my Buyback, who do I
contact?
Please call LACERS at (800) 779-8328 and ask to speak to a
Buyback Counselor.
Can I expedite my service purchase buyback?
You can expedite your service buyback by thoroughly reading the
information sheets, providing complete and thorough answers on
the forms, responding immediately to questions, and consolidating
your questions (preferably by email) to minimize the number of
communications back and forth to your buyback counselors. We will
have a record number of service purchase applications due to CSIP
and we will do our best to complete the service purchases, but we
cannot guarantee that the service purchase request will be
processed prior to your CSIP retirement date.
I have questions about my Health Plan in Retirement,
where can I find out more information?
Please visit our YouTube channel and
view the Health Videos. If you have additional
questions they will be answered in the Health Zoom Meeting you
will have approximately one month before your retirement
date. After your retirement application has been processed,
a health benefits counselor will contact you and assist you with
your questions.
When will I need to enroll in Health Benefits for
retirement?
You will enroll in Health Coverage during the CSIP Retirement
Process. Your retiree health coverage becomes effective the first
day of the month following your retirement effective date.
If you are on the list to retire in 2021 then you will want to
select your LA Well benefits so that you are covered until then.
When and how do I enroll in the retiree medical and/or
dental (health) plans?
Your LACERS health plan coverage is separate from your Active
Employee benefits coverage and you will need to transition to
LACERS’ medical and/or dental coverage during the retirement
process. Once your retirement paperwork has been approved, LACERS
will send you health-specific enrollment material via email or US
mail, a link to a video on how to complete your health enrollment
documents, and an invitation to an optional health-enrollment
question and answer webinar. In the meantime, information
regarding retiree health benefits, subsidies, and premiums are
found in our 2020 Health Benefits Guide found online at
lacers.org, under Retirees/Health Benefits. Note that LACERS’
health plan premiums, plan design, and subsidies are subject to
change each year, and the updated Health Benefits Guide is
usually available on our website in early October. Retirees must
enroll in LACERS’ plans within 60 days of their retirement date.
Other health questions may be referred to
lacers.health@lacers.org
Will CSIP affect my medical or dental benefits in any
way?
CSIP does not impact retiree medical or dental benefits in any
way. Enrollment, eligibility, subsidies, and plan options
remain the same.
How much will the retiree medical and dental plans cost,
who can enroll, and what are my subsidies?
Medical and dental plan premiums (costs) are based on the plan(s)
you choose and the number of people you enroll. Eligible
dependents (spouse/domestic partner, children under 26, etc.) may
be enrolled in retiree plans. In order to receive a
subsidy, you must be age 55 with 10 years of Service. The
subsidies you receive are based on Medicare status and years of
City Service/Service Credit. Retirees with 25 or more years
of Service Credit are eligible for the maximum subsidies, but
depending on your plan choices and who you enroll, the subsidies
may not cover the costs and the difference will be deducted from
your retirement allowance. Details regarding plan costs,
subsidies, benefits, dependents, and charges for medical/dental
coverage are available in the 2020 Health Benefits Guide and at
lacers.org under Forms and Information Sheets, under Information
Sheets, Your LACERS Health Plan Subsidy.
I have questions about Medicare where can I find out more
information?
Please visit our YouTube channel and
view the Medicare Videos. If you have additional questions
they will be answered in the Health Zoom Meeting you will have
approximately one month before your retirement date. After
your retirement application has been processed, a health benefits
counselor will contact you and assist you with your questions.
I’m 65 years old, do I need to enroll in Medicare in
order to be eligible for a LACERS medical plan?
CSIP participants and/or their dependents enrolling in a medical
plan who are 65 and over, or will be turning 65 during the
retirement process, should enroll in Medicare three months before
their retirement date once identified, or as soon as possible if
their retirement date is already within three months. Enrollment
in Medicare Part B (doctor visits) is required. Enrollment in
Medicare Part A (hospitalization) is required only if it is at no
cost to the Member/dependent (based on number of quarters that
FICA taxes have been paid). Medicare Part D (prescriptions) is
already incorporated into LACERS’ Medicare plans, so do not
enroll in it separately. Medicare enrollment/maintenance is
required in order to receive a medical subsidy. Enrolled
Members/dependents who do not have their Medicare in place at the
time of retirement may be temporarily carried on LACERS
non-Medicare plans, but the Member will be charged for any
premiums paid by LACERS for untimely and/or inadequate compliance
with Medicare enrollment requirements.
How much of a difference is there in my retirement
benefit between Cash Refund and Life Annuity allowance
options?
This information will be reflected in the estimate that you will
receive in your retirement packet. You can also create your own
retirement estimates by accessing your MyLACERS account.
Can I transfer my sick and vacation time payouts in
Deferred Compensation?
Please contact Deferred Comp at www.la457.com regarding your
rollover options.
What is the maximum number of sick hours that is paid out
when retiring?
Sick and vacation payouts are handled by your employing
department. Please contact your employing department and
your MOU.
Can I make contributions to the Deferred Compensation
Plan out of my separation incentive payment?
No. Retiring employees may not make deferrals out of their
separation incentive payments because those payments are not
eligible for post-severance contributions under Internal Revenue
Code rules. However, contributions can be made our of normal
wages and payouts of accrued vacation, sick, and overtime.
When will I receive my CSIP payment and my sick and
vacation payouts? Will LACERS include information on my CSIP
payment and sick and vacation payouts in my retirement
application package?
LACERS is not responsible for CSIP payments nor sick and vacation
payouts. Questions regarding CSIP payments should be directed to
the Office of the CAO and sick and vacation inquiries to your
employing department.
Can I have priority retirement?
No CSIP participant will have priority over another. Retirement
effective dates will be determined by LACERS based on the
participants first date of retirement eligibility and CAO
priority guidelines.
According to my union, I can delay my retirement until
January 2021 to take advantage of a COLA increase. Is this delay
possible?
No, retirement effective dates shall be determined by LACERS and
will be processed as expeditiously as possible without regard to
a possible COLA increase.
EAA recently sent an email stating the following: “We
have over 600 employees whose separation date of 1/19/2021 to
increase your LACERS formula.” If true, how is this request
made?
This statement is incorrect. You cannot make requests to select
or change your assigned retirement date for CSIP.
My Domestic Partnership is on file with Employee
Benefits. Do I need to have one on file with LACERS?
Yes, your filing with Employee Benefits cover your active
employee City benefits.. You need to register your Domestic
Partnership with LACERS for your retirement related benefits.
Are copies of the original divorce or birth certificates
accepted?
Yes. Please submit copies of the original documents and not
originals as they will not be returned to you.
Do any of my documents need to be notarized?
No. Due to COVID-19 the notary requirements are temporarily
suspended.
Will I need to attend any in-person meetings at the
LACERS’ office?
No. Due to COVID-19 all in-person sessions have been suspended.
Who should I contact to discuss payroll deductions that I
want to continue into retirement?
If you have any deductions that you want to continue in
retirement, you will want to reach out to the individual agency,
i.e. LAFCU, ACEBSA, City Employees Club, etc.
How do I apply for life insurance for
retirement?
LACERS does not offer life insurance. You should check with
Employee Benefits, through the Personnel Department to see if
your active life insurance policy is portable.
What happens with the Union’s insurance when I
retire?
Please contact your Union for further information.
2020 Stock Market Volatility
How does the condition of the stock market affect my
retirement benefit?
Although the benefits are paid based on Member contributions, the
City contributions, and LACERS’ investments returns, your
retirement benefit is calculated based on a set formula:
Retirement Factor X Service Credit X Final Average
Compensation. Fluctuations in the stock market do not
impact the amount of monthly benefits you receive.
Should I wait to retire?
The decision to retire depends on each Member’s situation and
readiness. Please contact us on our main line at (800)
779-8328 to inquire about retirement eligibility or assistance
running a retirement estimate.
How does the condition of the stock market affect my
Larger Annuity account?
If you elected the five-year Treasury Note option, your return is
based on the performance of the five-year Treasury Note. If
you elected LACERS publicly-traded asset option, your return is
based on LACERS publicly traded asset performance, which may be
impacted by the market fluctuations.
What happens if LACERS runs out of money?
It would be nearly impossible for LACERS to run out of money
since funding of the plan comes from 3 sources: required annual
contributions from the City, required bi-weekly contributions
from employees, and investment returns. Funding levels of
the plan on routinely monitored to ensure LACERS ability to
provide retirement benefits over the long term.
Historically, what happened with LACERS investments when
the stock market “crashed”?
The value of LACERS portfolio also declined, but less so than the
stock market. This is due to the portfolio diversification
across different types of investments such as stocks, bonds, and
real estate. In other words, LACERS does not put all of its
eggs in one basket. Diversification helps ensure that
sufficient assets are available to provide retirement benefits
over the long term.
Address Changes
How do I update my mailing address with LACERS?
LACERS receives your mailing address through the City’s payroll
system. If you’ve updated your address through your department’s
Personnel Section, it will automatically be updated in LACERS’
system.
If you are no longer employed by the City of Los Angeles, but
still have funds in your LACERS account, submit LACERS’
Change of Address request,
available here.
Beneficiaries
How do I designate my Beneficiary?
Beneficiary information on file with Employee Benefits is not
automatically shared with LACERS. To update your beneficiary,
submit a designation of beneficiary form. Download the
form and read additional important information about
designating beneficiaries on the Designating
Beneficiaries page.
How can I view my Beneficiaries on file?
Click here to log into
your MyLACERS account to view your beneficiaries on file.
Buybacks/Service Credit Purchases
How can I purchase time to increase my retirement
benefit?
If you are interesting in purchasing time with LACERS, your
process will vary depending on the type of time you have
available to purchase.
Visit Supplementing Your
Retirement for more information.
Divorce/Dissolution of Marriage
Do I need to submit my divorce decree to LACERS?
LACERS will require a copy of your final judgement. Please visit the page on divorce for more
information.
Domestic Partnership
Employee Benefits has my Domestic Partnership information. Do I
need to submit information to LACERS also?
Filing a Declaration of Domestic Partnership with Personnel
Department, Employee Benefits section is not sufficient to cover
the administration of benefits with LACERS. Please visit the Domestic
Partnership page for more details.
Early Retirement Incentive Program (ERIP)
What is the total number of ERIP participants?
There are 2,400 ERIP participants.
What is the ERIP Cost Obligation?
The ERIP Cost Obligation is the full cost of ERIP as defined in
the Los Angeles Administrative Code section 4.1033 (“ERIP
Ordinance”). The
ERIP Ordinance states that the ERIP Cost Obligation is the
obligation of LACERS Members, and that the City and Unions
envisioned ERIP to be cost-neutral to the City.
How was the ERIP Cost Obligation determined?
The preliminary ERIP Cost Obligation was determined by
an enrollment actuary engaged by the City, pursuant to
requirements of the Los Angeles City Charter section 1168 (b),
which specifies that the City Council must be advised in writing
of the cost of benefit increases prior to adoption of an
ordinance to change the LACERS benefit(s).
The City’s Consulting Actuary provided cost estimates of ERIP
based on various scenarios projecting “take” rates of eligible
employees. Preliminary projected costs ranged from $250
million to retire 2,229 employees, up to $354 million to retire
2,763. The ERIP Ordinance adopted a preliminary cost of
$271M to retire 2,400 employees.
However, based on the LACERS actuarial valuation report of June
30, 2009 (revised April 22, 2010), the unfunded actuarial accrued
liability increased by $355 million when factoring in nearly all
ERIP retirees (2,393 of the 2,400 ERIP retirees were finalized at
the time of the report).
What is the time period by which the ERIP Cost Obligation
should be paid?
According to the ERIP Ordinance, the employee contributions
toward the ERIP Cost Obligation begin on July 1, 2011 and end on
June 30, 2026 (a 15-year period), or until the ERIP Cost
Obligation is fully paid, whichever comes first.
How much money to date, has been paid by LACERS’ Active
and Retired Members toward paying off the ERIP Cost
Obligation?
As of December 31, 2020, over $219 million has been paid toward
the $355 million ERIP Cost Obligation. The pace of
contributions toward ERIP are expected to decline slightly as the
number of active Tier 1 Members retire. New LACERS Members
joining the City, currently enter under Tier 3 Membership and do
not contribute to ERIP.
Furlough Information: Full-Time (72+ hour) Employees
Will mandatory furloughs affect my retirement
benefits?
No. Taking furlough day(s) will not impact your retirement
benefits because your benefit is determined by your Compensation
Earnable, which is the amount your classification earns for 80
hours in a pay period regardless of the number of hours
for which you are compensated.
If I am earning less money because of the furlough days,
why won’t my retirement benefits be impacted?
Your retirement allowance is based on the following formula:
Service Credit x Final Compensation x 0.0216.
Service Credit – This is determined by the
amount of time you have worked as a member of LACERS and made
contributions to your retirement account per Los Angeles
Administrative Code (LAAC) 4.1001. As long as you work
enough hours to cover the costs of your full retirement
contribution and any other payroll deductions (this very likely
will not be an issue with two furlough days per month), you will
continue to earn the same amount of Service Credit with or
without furlough days.
Final Compensation – This is the average of
the last 12 months (or any other 12 consecutive month period you
designate) of Compensation Earnable in your classification
and will not be affected by furlough days. “Compensation
Earnable” is the amount your classification earns for full-time
service (LAAC 4.1001). Taking furlough days will reduce the
amount of money you earn, but it will not reduce your
Compensation Earnable. Because furlough days will not impact your
Service Credit or your Final Compensation, they will have no
impact on your retirement allowance.
Do I still have to make my full retirement contribution
if I am taking mandatory furlough days?
Yes. Your retirement contribution is calculated based on
your compensation earnable for your specific classification
(LAAC 4.1003). Your compensation earnable is the full
salary, wage or compensation established for any position or
office in the City service (LAAC 4.1001). Your retirement
contribution and service credit will remain the
same whether your work 72 hours or 80 hours in a pay period
While I understand mandatory furlough days will not
affect my retirement benefits, it will reduce my salary. Can I
borrow from my retirement account?
No. The Los Angeles Administrative Code does not provide LACERS
the authority to allow members to borrow from their LACERS
accounts.
Do I have to take furlough days?
Please check with your Department Personnel Director to determine
if you are required to take any furlough days.
Does LACERS have any services that will help me cope with
the salary reduction of mandatory furlough days?
If you are facing other specific problems and feel you need
assistance, the City’s Employee Assistance Program (EAP) provides
help and counseling for a variety of issues. The EAP can be
contacted 24 hours a day, 7 days a week by their toll-free line
at (800) 213-5813. Their website is also available for
information at: www.liveandworkwell.com,
company code: CityofLA
Medicare
I am already over age 65 but I am still working for the
City. Do I need to apply for Medicare?
If you are still working at age 65 and are covered by the City’s
(“Active”) medical plan, you can defer enrollment in Medicare
until you retire. During your retirement process, LACERS Staff
will provide you with additional documentation to take to Social
Security to waive any late enrollment penalties.
For additional information on Medicare after retirement, please visit the
Retirees Medicare Information page.
Retirement – Managed Retirement Application (MRA)
Process
When does the Managed Retirement Application (MRA) go
into effect?
The Managed Retirement Application is now in effect and applies
to any retirement application received on or after May 1, 2020.
Managed Service Retirement Application
How does the MRA differ from the regular retirement
application?
The MRA differs in that it has two advisory notifications. The
first explains that your requested retirement effective date is
not guaranteed. While every effort will be made to honor
your requested date, the changing nature of the ongoing public
health emergency impacts LACERS’ operational/processing capacity.
The secondary advisory relates to the use of an estimated
retirement allowance. LACERS, wherever possible, is implementing
measures to aid in expediting the retirement process. The use of
estimated retirement allowances will enable staff to set up
members for retirement but will require an audit review later,
which may result in a future adjustment to your retirement
allowance.
How do I file the Managed Retirement
Application?
You may submit your MRA by email to lacers.services@lacers.org,
or fax your application to (213) 473-7218.
What documentation should I provide along with my
MRA?
The required documents list can be found on here.
Does the normal 30 to 60 days filing period still
apply?
Yes, however, your LACERS’ counselor will notify you as to your
official retirement effective date; which may or may not be the
date you requested. LACERS will notify you of your official date.
What will be my employment status after my requested
retirement effective date passes?
If you are notified by LACERS that your requested retirement
effective date has been confirmed, then your status will be
retired. However, if LACERS has not confirmed your requested
retirement date or provided you with an official alternative
date, your employment status remains unchanged if you are an
active employee.You should continue to follow your department’s
reporting requirements and guidelines until you and your
department are notified of your official retirement date.
What if I want to amend or withdraw my managed retirement
application? Do the normal rules apply?
You will be able to request a new date by withdrawing your
application and reapplying with a new application and new
requested date.
What if I have questions about applying for retirement or
the retirement application?
You can direct your questions to lacers.services@lacers.org.
A counselor will respond via email or by phone. Please allow for
a minimum of three days for a response.
Can I still request an estimate for my retirement
benefit?
Yes, you have two options:
Log into your MyLACERS account and run an estimate from there. If
you do not have a MyLACERS account you can contact lacers.services@lacers.org
to request a PIN number.
You can also request an estimate through lacers.services@lacers.org
Will I be assigned a counselor to assist me with the
retirement process?
Yes, once your retirement effective date has been determined,
your retirement counselor will contact you by email and/or phone.
Additional counseling aides will also be available on the LACERS
website, LACERS.org.
What if I already have plans that I cannot change, or
have extenuating circumstances and need to retire on my requested
date?
LACERS must apply the Managed Retirement Policy to everyone.
However, you may attach a brief statement explaining your
situation. LACERS will review your circumstance but cannot
guarantee accommodating your request.
When I retire, am I automatically enrolled into a retiree
health plan?
Retiree health plans are separate from the City employee health
plans and enrollment is administered exclusively by LACERS.
If you wish to receive health coverage through LACERS as a
retiree, you will need to enroll in a LACERS medical and/or
dental plan when you retire. A LACERS Health Advocate will
contact you by phone or via email once your retirement effective
date has been scheduled.
During the retirement process, when do I need to submit
my LACERS health plan enrollment forms?
Enrollment in the retiree medical and dental plans is separate
from the service retirement process and can be started only after
your retirement documentation has been submitted. Separate
medical/dental enrollment forms and supporting documentation are
required.
NOTE: Failure to provide LACERS with
completed health enrollment forms or required supporting
documentation can result in delays in the commencement of retiree
medical/dental plans and in the retiree being charged for
premiums LACERS pays on their behalf for requested coverage.
When does my retiree medical/dental plan go into
effect?
Retiree medical and dental coverage goes into effect the first of
the month following your retirement effective date. Your
active City employee medical/dental coverage extends to the end
of the month of your retirement.
What happens to my medical/dental benefits if LACERS
pushes back my proposed retirement date?
City employees whose requested retirement date is pushed back by
LACERS due to workload limitations will remain on their active
City employee medical/dental plans until the end of the month of
their actual retirement effective date.
NOTE: Medical/dental enrollment forms are
valid for a maximum of 60 days; extensions beyond 60 days of the
signature date on the form will result in the need for the
retiree to submit new enrollment forms.
If I do not enroll in a LACERS health plan at the time of
retirement, will I be able to enroll later?
LACERS retirees have the opportunity to enroll in a LACERS
medical and/or dental plan every year during Open Enrollment,
which usually runs October 15 – November 15, with coverage taking
effect January 1 of the following year.
Also, if you experience a qualifying event outside of Open
Enrollment, you will be able to enroll in a LACERS health
plan. See the LACERS Health Benefits Guide
for more information.
Do I need to enroll in Medicare in order to participate
in a LACERS medical plan?
Retirees and/or their dependents who are eligible for Medicare
(soon-to-be turning 65, or 65 and over) are required to enroll in
and maintain Medicare in order to participate in a retiree
medical plan. Medicare Part B (e.g., doctor visits) is
required for all; Medicare Part A (hospitalization) is required
only if it is free to the retiree. LACERS requires proof of
Medicare enrollment (copy of Medicare card).
Failure to enroll in/maintain Medicare coverage may result in the
termination of the medical plan and the medical subsidy and the
retiree being held responsible for medical premiums LACERS has
paid on their/their dependent’s behalf.
Seminars
How do I register for a Seminar?
Login to
your MyLACERS Account to view and register.
Time (Sick, Vacation, etc.)
What happens to my SK/VC when I retire? Does LACERS pay me out?
LACERS is not involved with the disbursement of these benefits.
Sick, Vacation, or Holiday time payouts after retirement are paid
from the Controller’s Office. Questions regarding these benefits
should be directed to your department personnel.
Retirees
2020 Stock Market Volatility
How does the condition of the stock market affect my
retirement benefit?
Although the benefits are paid based on Member contributions, the
City contributions, and LACERS’ investments returns, your
retirement benefit is calculated based on a set formula:
Retirement Factor X Service Credit X Final Average
Compensation. Fluctuations in the stock market do not
impact the amount of monthly benefits you receive.
How does the condition of the stock market affect my
Larger Annuity account?
Fluctuations in the public investment markets do not impact the
payout amount of Larger Annuity monthly benefits you receive.
What happens if LACERS runs out of money?
It would be nearly impossible for LACERS to run out of money
since funding of the plan comes from 3 sources: required annual
contributions from the City, required bi-weekly contributions
from employees, and investment returns. Funding levels of
the plan on routinely monitored to ensure LACERS ability to
provide retirement benefits over the long term.
Historically, what happened with LACERS investments when
the stock market “crashed”?
The value of LACERS portfolio also declined, but less so than the
stock market. This is due to the portfolio diversification
across different types of investments such as stocks, bonds, and
real estate. In other words, LACERS does not put all of its
eggs in one basket. Diversification helps ensure that
sufficient assets are available to provide retirement benefits
over the long term.
Address Change
How do I change my address with
LACERS?
Visit Change
of Residence for more information.
Award Letter/Pension Verification
I am applying for a loan/housing and the company is
requesting verification of my pension or retirement account. What
should I do?
Please visit the Benefit
Verification Request page for more information about
requesting an Award Letter of your benefit.
Direct Deposit
How do I update my Direct Deposit account
information?
Please visit Your Benefit Payment
page for the Direct Deposit Authorization form, and for more
information.
Early Retirement Incentive Program (ERIP)
What is the total number of ERIP participants?
There are 2,400 ERIP participants.
What is the ERIP Cost Obligation?
The ERIP Cost Obligation is the full cost of ERIP as defined in
the Los Angeles Administrative Code section 4.1033 (“ERIP
Ordinance”). The
ERIP Ordinance states that the ERIP Cost Obligation is the
obligation of LACERS Members, and that the City and Unions
envisioned ERIP to be cost-neutral to the City.
How was the ERIP Cost Obligation determined?
The preliminary ERIP Cost Obligation was determined by
an enrollment actuary engaged by the City, pursuant to
requirements of the Los Angeles City Charter section 1168 (b),
which specifies that the City Council must be advised in writing
of the cost of benefit increases prior to adoption of an
ordinance to change the LACERS benefit(s).
The City’s Consulting Actuary provided cost estimates of ERIP
based on various scenarios projecting “take” rates of eligible
employees. Preliminary projected costs ranged from $250
million to retire 2,229 employees, up to $354 million to retire
2,763. The ERIP Ordinance adopted a preliminary cost of
$271M to retire 2,400 employees.
However, based on the LACERS actuarial valuation report of June
30, 2009 (revised April 22, 2010), the unfunded actuarial accrued
liability increased by $355 million when factoring in nearly all
ERIP retirees (2,393 of the 2,400 ERIP retirees were finalized at
the time of the report).
What is the time period by which the ERIP Cost Obligation
should be paid?
According to the ERIP Ordinance, the employee contributions
toward the ERIP Cost Obligation begin on July 1, 2011 and end on
June 30, 2026 (a 15-year period), or until the ERIP Cost
Obligation is fully paid, whichever comes first.
How much money to date, has been paid by LACERS’ Active
and Retired Members toward paying off the ERIP Cost
Obligation?
As of December 31, 2020, over $219 million has been paid toward
the $355 million ERIP Cost Obligation. The pace of
contributions toward ERIP are expected to decline slightly as the
number of active Tier 1 Members retire. New LACERS Members
joining the City, currently enter under Tier 3 Membership and do
not contribute to ERIP.
Health Plan Changes (Medical and Dental)
When can I make changes to my Medical or Dental
plan?
Please visit Health Enrollment page for information about Open
Enrollment, and other qualifying events where you may
ID Cards (Medical and Dental)
I haven’t received my new Medical/Dental ID card. Who do
I contact?
ID Cards are issued by the insurance carrier. Please refer to the
last page/back cover of the Health Benefits Guide for each
carrier’s contact phone number.
The Health Benefits Guide is
located on this page.
Medicare
I will be turning 65. What do I need to do?
Members and dependents who turn 65 will need to contact the
Social Security Administration to enroll in Medicare, then
fill out and submit the appropriate Senior Plan Enrollment form
and a copy of the Medicare card. Please visit the
Retirees Medicare Information page for additional details.
Open Enrollment
Due to unusual circumstances, LACERS will have an extended Open
Enrollment period. LACERS will accept applications for health
plan changes, to add eligible dependents, and for new enrollments
without a recognized Qualifying Event from October 15, 2020 to
March 31, 2021. If, during this period, Members apply to
make changes to existing plans, add dependents, or enroll anew
(for already-retired Members not previously enrolled), they need
to be aware that:
- LACERS will have up to three months to process new
enrollments or changes.
- The effective date of medical and/or dental coverage will be
within 93 days (three full months) after the completed OE forms
are received by LACERS.
- The effective date for any Open Enrollment addition/change
will range from January 1, 2021 to July 1, 2021.
- The effective date will be dependent on when LACERS is able
to process the enrollment in light of the heavy workload
associated with SIP retirements. LACERS staff should not
guarantee when an addition/change will go into effect, only that
there may be as much as a three month delay.
- Members will not be able to make another health plan change
for at least one year from when their new plan goes into effect,
unless they experience a recognized qualifying event.
- Members who start their retirement during the Open Enrollment
period (10/15/20 through 3/31/21) may not make subsequent health
plan changes during the extended Open Enrollment period unless
they experience a qualifying event.
Why is LACERS extending the Open Enrollment period this
year?
The Extended Open Enrollment period this year was implemented due
to the COVID-19 impact on LACERS staffing and a City program to
maximize employee retirements in light of the financial
crisis. The resulting significant increase in workload of
City retirements coupled with staffing restrictions required that
the Open Enrollment be extended to provide flexibility to staff
to meet enrollment demands.
Will LACERS return to the usual October 15 through
November 15 Open Enrollment period in 2021?
LACERS intends to return to the normal Open Enrollment period
next year barring unforeseeable circumstances.
What are Qualifying Events?
A Qualifying Event allows you to make health plan changes outside
of Open Enrollment. The following Qualifying Events will
allow you to make health plan changes or enroll in a plan within:
- 60 days of the Retiree turning age 55
- 90 days of the Retiree turning age 65 (based on Medicare
eligibility)
- 30 days of relocation out of or into a LACERS HMO plan
zip code service area
- 30 days of a LACERS HMO plan zip code service area becoming
available or unavailable 30 days of being involuntarily
terminated from a non-LACERS medical plan (LACERS requires proof
of termination)
If my Retirement Effective Date is before 10/15/20, can I
change plans in the Open Enrollment period?
Yes, because this retirement date is prior to the Open Enrollment
period, this Member will be eligible to participate in the
10/15/20 through 3/31/21 Open Enrollment. Anyone retiring
between 10/15/20 and 3/31/21 would not be eligible to
participate.
Can I request that my Open Enrollment addition/change be
effective as of a specific date?
LACERS’ processing of Open Enrollment material will be based
primarily on workload and not on Member requests, so no guarantee
can or should be made as to plan effective dates, only that any
effective date will be no more than three months after the
completed enrollment material is received by LACERS.
What if I am losing or don’t currently have
coverage?
LACERS will prioritize the processing of enrollments for those
who are currently without LACERS medical or dental coverage, or
those that can prove that their current coverage outside of
LACERS will be involuntarily terminated by a certain date.
Does the three month delay in processing my enrollment
mean that my request will go into effect three months after I
submit my paperwork?
No, plan additions/changes may take as long as three months to go
into effect but may be processed earlier if LACERS is able to do
so. LACERS will try to process requests as soon as
possible, but our ability to do so will be based on workload at
the time.
If I request a health plan change and LACERS has up to
three months to process that request, does that mean I can go as
long as three months without health coverage?
No, if you have existing coverage with LACERS, that coverage will
continue until your newly-requested coverage goes into effect;
there will not be a lapse in your coverage.
If my Open Enrollment request for medical coverage went
into effect on February 1, 2021, can I participate in the next
Open Enrollment period (October to November of 2021) to change my
medical coverage for 2022?
No, unless the Member experiences a recognized Qualifying Event,
they will not be eligible to participate in the next Open
Enrollment period because of the requirement that any plan change
be in effect for at least one year before a subsequent change is
made.
If I make a change to only my medical plan during this
Open Enrollment period and it goes into effect after January of
2021, can I make a dental plan change in the next Open Enrollment
period?
Yes, so long as no dental plan change was made in the 2021 Open
Enrollment period, changes to the dental plan (or vice versa)
would be permitted because the one year plan enrollment
restriction has not been violated.
Why do I need to wait at least a year to make another
health plan change (outside of a qualifying event)?
The health plans base premiums on enrollment of at least one year
to ensure that the projected cost of plan use will be adequately
covered by premium payments. This was part of the agreement
with the health plan carriers to allow for an extended Open
Enrollment period.
Because of the potential of a delay in processing my Open
Enrollment addition/change, how will I know when it goes into
effect?
LACERS will contact all those who submitted Open Enrollment
addition/change requests at least two weeks prior to date the
request goes into effect (effective dates are always the first of
a month) to advise them of the development.
Can I contact LACERS to confirm receipt?
Do not contact LACERS to confirm receipt of forms until after
eight business days if mailed, or after 4 business days if
emailed or faxed.
Taxes
Do I still receive a W-2 Tax form after
retirement?
LACERS Members receive a 1099-R for their retirement payments
received for the year.
I did not receive my Tax form for the year. How can I
obtain a copy?
Login to your MyLACERS
Account to view and print a copy of your 1099-R tax forms, or
contact LACERS Member Service Center at (800) 779-8328 to request
one mailed to your address on file.
How do I change my Tax Withholding?
Visit this page
for more information on changing your tax withholding.
Do I have to pay taxes on my retirement
allowance?
Your retirement income is taxable. LACERS Members have
contributed to the plan on a pre-tax basis since 1986.
Any contributions prior to 1986 were taxed, so any
portion of your allowance that is based on pre-1986
contributions will not be subject to taxes.
MyLACERS
How do I create my MyLACERS Account?
MyLACERS enrollment requires that a PIN be sent to the Member’s
mailing address on file in order to create the account. You can
request a new PIN at the following link https://mylacers.lacers.org/RequestPIN.aspx.
The PIN letter will include step-by-step instructions on creating
your account, and should be received in 3-5 business days. Once
you receive your PIN, for further assistance with accessing your
MyLACERS Account, please contact LACERS Member Service Center at
(800) 779-8328.
How can I reset my MyLACERS password or challenge questions?
For assistance with accessing your MyLACERS Account, please
contact LACERS Member Service Center at (800) 779-8328. Once
your identity is verified, our staff will be able to assist a
password reset, or security challenge questions reset.
I received an email about an Unrecognized Device accessing my
Account. What do I do?
Any time you access your MyLACERS Account from a new device or
location, you will be prompted to enter your Challenge Questions
to access the account. This will also trigger an email to notify
you that your account has been logged in using a new device.
If you do not recall accessing the account on the date and time
you received the email, you may wish to reset your password to
secure your account, otherwise you may disregard the email.
Two-Factor Authentication
What is two-factor authentication?
Two-factor authentication is when a user is required to provide a
second means of proving they are who they claim to be. The
first authentication is the password used to login with a
username. The second authentication, such as an email or
SMS message code, provides an additional layer of security to the
account.