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Cynthia Lau Legislative Affairs Officer AB 1902

Cynthia Lau Legislative Affairs Officer AB 1902. Comparison of Plan E and Plan D – New Hire Elects One. Prospective Plan Transfer (PPT). D E. E D. May transfer back and forth – may transfer between plans no more than once every 3 years while in period of “active employment.”.

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Cynthia Lau Legislative Affairs Officer AB 1902

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  1. Cynthia Lau Legislative Affairs Officer AB 1902

  2. Comparison of Plan E and Plan D – New Hire Elects One

  3. Prospective Plan Transfer (PPT) D E E D May transfer back and forth – may transfer between plans no more than once every 3 years while in period of “active employment.”

  4. What happens if member is disabled while in Plan D? To apply for disability retirement, PPT transferee must have either: • Two yrs. continuous active service after transfer, or • Earned 5 yrs. service credit under Plan D after transfer Requirements prevent Plan E member from transferring to Plan D and immediately filing for disability retirement.

  5. Issue – Member may be disabled, but ineligible to apply for LACERA disability retirement due to failure to meet 2 yr./5 yr. requirement.

  6. County Long-Term Disability Plan (LTD) • Provides benefits for Plan D and Plan E members who are sick or injured and cannot work. • Benefits expire at age 65, or when no longer disabled.

  7. After 2 yrs. on LTD, County requires Plan D (contributory) members to file for retirement in order to continue LTD. • LTD benefit is offset (reduced) by amount of retirement allowance • County does not require Plan E members to file for retirement after 2 yrs. to continue LTD.

  8. Under certain circumstances, it may be more advantageous for the affected member to continue LTD benefits under Plan E than under Plan D. Influencing factors include: • Member’s age • Amount of service credit • Status of LTD Health Insurance

  9. Currently (Pre-AB 1902) To continue LTD benefits, a disabled Plan D PPT transferee who fails to meet 2 yr./5 yr. requirement may only apply for a service retirement.

  10. Effective January 1, 2011 (Post-AB 1902) Disabled Plan D PPT transferee who fails to meet 2 yr./5 yr. requirement has options: • May transfer back to Plan E and continue under the County LTD program • Or may file for a service retirement under Plan D

  11. NOTE: Plan D members electing deferred retirement are ineligible for LTD benefits.

  12. How can you help? Be aware of this new provision and communicate it to employees. Effective 1-1-11.

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