SDCERA is a defined benefit
plan, qualified under Section 401(a) of the Internal Revenue
Code. It is important to understand these key facts about a
defined benefit plan:
Your retirement benefit is calculated based on a formula using your age at retirement, years of service credit, and monthly final average compensation.
SDCERA is a contributory plan, meaning
both the member and the employer pay contributions into
the system; membership and contributions are mandatory.
Remember, however, that your retirement benefit is not
determined by how much money you contribute into the
system, but rather by the formula described above.
Contributions for Tier I, Tier A and Tier B members are based upon membership
classification, representation unit, and entry age into the system. Tier C member contributions are based upon membership classification (General or Safety).
The amount of compensation used to calculate retirement benefits for Tier C Members is limited under the California Public Employees’ Pension Reform Act of 2013 (PEPRA). The 2017 limit on compensation for General, Tier C Members is $118,775 and for Safety, Tier C Members is $142,530. These limits may be adjusted annually based on changes in the Consumer Price Index for All Urban Consumers.
Each year, Tier C Members pay contributions on earnings up to the annual PEPRA compensation limit. Member contributions will discontinue once earnings reach annual compensation limits and will resume with the first paycheck issued in the next calendar year.
Your representation unit is determined by your job class. You may find your representation unit by contacting
your payroll representative, reviewing the information
given to you at new hire orientation or through the San
Diego County Human Resources website.
Membership begins on the first day of the first payroll period
in the month following the month in which you began your job—not on your first day of work.
Your entry age is the age you are when you enter SDCERA membership. If you were more than 6 months past your birthday when you entered membership, SDCERA rounds your actual age up to the next age. For example if you entered SDCERA membership at age 30 and 7 months, your official entry age would be 31.
Your contributions are deducted from each biweekly
paycheck you receive.
The employer’s contributions are based upon the
advice of the actuary who estimates how much money must
be contributed to the fund each year in order to
support the retirement benefits that will become payable
in the future.