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Please click on a question below to read more information. If you cannot find the answer to your question here, please contact the KCERA office.
How do I join KCERA?
Membership in KCERA is automatic after appointment to a permanent position requiring 50 percent or more of the regular standard hours required. Membership with KCERA begins on the first day of the next payroll period following your start date of employment with Kern County or a participating Special District.
Do I have to participate in retirement?
If you are under age 60 at the time you are hired, you must participate in the retirement plan. If you are over the age of 60 when you are hired, you may choose whether to participate. Should you choose not to participate, you may obtain a Waiver of Membership from the KCERA office.
How long do I have to make retirement contributions?
Your date of hire and your status as either a General or Safety member determine how long you will pay retirement contributions. General members hired on or after August 7, 2004 will pay retirement contributions until their retirement, except for employees of the Court and certain Special Districts. General members hired prior to August 7, 2004 will pay contributions until they obtain five years of retirement service credit, at which time the County will begin paying the retirement contributions for these employees. This is known as a “five-year stop.” Safety members hired prior to MOU-specified dates are also eligible for a five-year stop.
Can I borrow from my retirement account?
You may not borrow from, use as collateral or withdraw your contributions and interest during your employment. However, KCERA can provide information about your account to lenders at your request. The lender must provide KCERA with a release form signed by you before any confidential information will be released.
Can I invest additional money in my retirement account?
You cannot invest additional money in your retirement account. Your benefit at retirement will be based on three factors: your age at retirement, your total years of retirement service credit and your highest final average monthly compensation. Your contributions into the plan do not play any part in how your monthly retirement benefits will be computed. Therefore, there is no advantage to investing additional funds into your KCERA account.
However, if you wish to save additional funds for retirement, you may take advantage of the County's 457 Deferred Compensation Plan. This plan allows you to defer income each pay period on a tax-deferred basis and to choose how those funds are invested. The 457 Deferred Compensation Plan is not administered by the KCERA. If you are interested in receiving more information about the Plan, please contact Susan Leedy at (661) 868-3467. Susan's office is in the Treasurer-Tax Collector's Office, located on the 2nd Floor of the County Administration Building.
How is interest credited to my retirement account?
On June 30 and December 31 of each year, KCERA credits interest to member accounts. The rate credited is calculated on a “five-year smoothing” of KCERA’s investment gains and losses in the preceding five years. If the last six months of smoothed returns were positive, KCERA credits that earnings percentage to member accounts six months later. Conversely, a negative smoothed earnings rate could result in a negative interest posting.
When can I retire?
You may retire anytime after meeting minimum eligibility requirements. See Eligibility for Service Retirement for more information.
When is the best time to retire?
Only you can decide the best time to retire. However, a KCERA service representative can provide information to help you decide the best retirement date for your individual circumstances. Following are some factors to consider when choosing your retirement date:
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- If you retire on or before April 1, you will immediately become eligible for the cost of living adjustment payable to retirees each April 1.
- Every complete bi-weekly of service increases your retirement service credit. To optimize your benefit, you should retire on the first day of a bi-weekly pay period. If you retire in the middle of a bi-weekly pay period, you will not receive any retirement service credit for the final incomplete bi-weekly period.
- The age factor used to compute your benefit will increase every three months until you are age 60 for General Tier I members, age 65 for General Tier II members, and age 50 for Safety members.
- Your final compensation period for retirement purposes is computed based on your highest twelve consecutive months of salary. You need to work at least one year at a higher salary in order to get the advantage of an increase in retirement.
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What is the best retirement option to choose?
You have a variety of retirement options from which to choose. Each option is payable for the life of the retiree. Further, your beneficiary(ies) may be entitled to a continuance of benefits after your death. Therefore, the best retirement option is the one that is most beneficial to your individual situation. Following is a description of each option:
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- Unmodified Option -- An unmodified benefit provides the maximum allowance to you for your lifetime, with 60 percent of the allowance continued to your spouse or registered domestic partner after your death. To qualify for the continuance, you must have been married to your spouse for at least one year prior to the date of your retirement or registered as a domestic partner with the California Secretary of State for at least one year prior to the date of your retirement. If you remarry after retirement, you must have been married for two years prior to your death and your spouse must be age 55 or older upon your death. If you re-register a domestic partnership after retirement, you must have been registered for two years prior to your death and your domestic partner must be age 55 or older upon your death. This option provides for a return of any unused contributions and interest if both you and your spouse/domestic partner pass away before your contributions and interest are used up.
- Modified Option 1 -- Under Option 1, you may elect to receive a slightly reduced retirement allowance, payable throughout your life, with the provision that your accumulated contributions less the sum of the actual monthly annuity payments received by you will be paid upon your death to your named beneficiary. Under this option, the beneficiary may be changed even after retirement. This is the only option that allows a member to name his or her estate as beneficiary.
- Modified Option 2 -- This option pays a reduced monthly allowance but with the provision that 100 percent of the allowance will continue after your death to your designated beneficiary. Your beneficiary does not have to be a spouse, but your beneficiary must be someone who has an insurable interest in your life. Your monthly allowance is determined based on the age of your beneficiary, so the allowance will be significantly reduced if your beneficiary is considerably younger than you are. Your beneficiary may not be changed after retirement, even if your beneficiary predeceases you. Further, there are no provisions to pay remaining contributions and interest even if you and your beneficiary pass away before all contributions are used up. All payments stop at the death of both annuitants.
- Modified Option 3 -- This option pays a reduced monthly allowance but with the provision that 50 percent of the allowance will continue after your death to your designated beneficiary. Your beneficiary does not have to be a spouse, but your beneficiary must be someone who has an insurable interest in your life. Your monthly allowance is determined based on the age of your beneficiary, so the allowance will be significantly reduced if your beneficiary is considerably younger than you are. Your beneficiary may not be changed after retirement, even if your beneficiary predeceases you. Further, there are no provisions to pay remaining contributions and interest even if you and your beneficiary pass away before all contributions are used up. All payments stop at the death of both annuitants.
- Modified Option 4 -- This option is similar to Option 2 in that it pays a reduced monthly allowance with the provision that 100 percent of the allowance will continue after your death. However, this option allows you to name more than one beneficiary to share in the continuance. All beneficiaries must have an insurable interest in your life. Your monthly allowance is determined based on the age of your beneficiaries, so the allowance may be sharply reduced if any of your beneficiaries are considerably younger than you are. None of your beneficiaries may be changed after retirement, even if any of your beneficiaries predecease you. Further, there are no provisions to pay remaining contributions and interest even if you and your beneficiaries pass away before all contributions are used up. All payments stop at the death of all annuitants.
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What is the Temporary Annuity option?
The Temporary Annuity option provides a way for members integrated with Social Security to level their income after retirement. If you retire for years of service before reaching age 62 and are fully insured with Social Security, you may elect to have your County retirement allowance increased prior to age 62 and decreased after age 62.
If you select this optional plan, you would receive more than your normal monthly retirement benefit until you reach age 62. When you reach age 62, your monthly benefits would be reduced below the normal amount for the remainder of your lifetime. After age 62, Social Security benefits will make up the difference in your monthly benefit so that the amount of your monthly retirement benefit will remain constant from the time of your retirement.
Your pension is decreased in the month following your 62nd birthday unless your birthday is on the 1st or the 2nd. In that case, your pension will be reduced in the same month as your birthday because Social Security will pay benefits for the entire month. It is the member's responsibility to apply for Social Security at age 62.
Choosing the Temporary Annuity option will not affect the amount of any survivor continuance, which will be based on the applicable percentage of your normal monthly retirement benefit.
Will my spouse, registered domestic partner and/or beneficiary continue to receive benefits after my death?
If you choose an option that allows for a survivor continuance, your eligible spouse, registered domestic partner or your named beneficiary may continue to receive benefits after your death.
How do I change my beneficiary?
If you are still employed, you may change your beneficiary by completing a new Sworn Statement card with your department payroll clerk. You may also download and print a Beneficiary Change - Active & Deferred form or you may request one from the KCERA office.
If you are a deferred member, you may download and print a Beneficiary Change - Active & Deferred form or you may request one from the KCERA office.
If you are a retired member, you may download and print a Beneficiary Change - Retired form or you may request one from the KCERA office.
Can I have my retirement check directly deposited to my bank account?
Yes, your retirement check can be directly deposited to your bank account through electronic fund transfer. Please contact the KCERA office for a Direct Deposit enrollment form. You may also request a form directly from Northern Trust, KCERA's payroll agent.
Can I continue my County health insurance after retirement?
You may continue your County health insurance after retirement. Any specific questions about eligibility for health benefits should be directed to the Health Benefits division at (661) 868-3182.
How do I change my address?
If you are an active County or District employee, you must change your address with your employer. Your corrected address will automatically be fed through the County's payroll system to KCERA's files.
If you are deferred or retired, you may change your address by sending a written change of address request to the KCERA office. Be sure to include your full name, your Social Security number, your former address and your new address. You may also download and print a Change of Address form here.
What are my options for my retirement contributions if I leave Kern County employment?
You have four options for your retirement contributions and interest if you leave employment with Kern County or a participating Special District for any reason other than retirement.
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- Refund -- You may choose to take a refund of your contributions and interest, either as a direct refund or a direct rollover to another qualified tax-deferred account. If you choose a direct refund, KCERA must withhold 20 percent for Federal taxes and two percent for state taxes. You should consult with your tax advisor regarding other consequences of direct refund, including whether you will be subject to early withdrawal penalties.
- Deferred Retirement -- If you have at least five years of retirement service credit, you are eligible to leave your contributions and interest on deposit and choose a deferred retirement. You may then begin drawing a monthly retirement allowance when you meet other eligibility requirements.
- On Deposit, Not Deferred -- You may choose to leave your contributions and interest on deposit even if you are not eligible to choose deferred retirement. Your contributions will continue to earn interest. You may choose to withdraw your contributions at a later date if you have not returned to work for Kern County or for a reciprocal agency.
- Reciprocity -- If you will be entering employment with another public agency in the State of California, you may be eligible to defer your retirement and establish reciprocity. Your new employer must have a reciprocal agreement with KCERA or with the California Public Employees' Retirement System (CalPERS). Further, you must enter your new employer's retirement system within six months of your termination date from Kern County.
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Can I rollover my retirement contributions to a new employer's retirement plan?
You must check with your new employer to inquire whether its retirement plan can accept a rollover from KCERA. KCERA is a 401(a) tax-deferred, defined benefit plan.
Can I rollover retirement contributions from a previous employer's retirement plan to KCERA?
KCERA cannot accept a rollover from any other retirement plan. If your previous employer was another public agency having a reciprocal agreement with KCERA or CalPERS, you may be eligible to establish reciprocity.
What is a service credit purchase and how will it benefit me?
Active KCERA members can purchase and receive retirement service credit for allowable prior public service and prior Kern County service. Purchasing service credit may increase your benefit at retirement. Further, purchasing prior Kern County service will count toward vesting in the retirement plan and toward eligibility for retirement.
Allowable prior public service includes service with the federal government, active military service, service with the State of California, service with any county or city in California, or any public district in Kern County. You must not be eligible to receive a pension by virtue of your prior employment.
Allowable Kern County service includes extra-help, per diem, temporary or part-time service. You may also redeposit previously withdrawn contributions to restore service credit.
You may not purchase service credit for service rendered as an independent contractor or for employment in which you are eligible to participate in another retirement plan.
What is reciprocity?
Generally, it is not possible to link retirement service credit earned in one retirement plan with another retirement plan. However, if two plans agree to "reciprocity," it becomes possible to have service credit earned in one plan recognized in a reciprocal plan. KCERA has established such reciprocity with a number of other systems, including every county operating under the County Employees' Retirement Law of 1937. We also recognize reciprocity with the California Public Employees' Retirement System (CalPERS) and with agencies that have a reciprocal agreement with CalPERS. Also, since January 1999, we recognize reciprocity with the California State Teachers Retirement System (CalSTRS).
To qualify for reciprocity between KCERA and another system, a member must enter a reciprocal system within six months of termination from the previous retirement system. For example, if you leave employment with Kern County and, within six months, begin working for the State of California, you may apply to establish reciprocity between KCERA and CalPERS.
When you apply for reciprocity, your years of service and your contributions stay on deposit with your original retirement system. However, your new retirement system will recognize your years of service with your previous retirement system and count those years toward your vesting in the new system and toward your eligibility for retirement in the new system. For Kern County safety employees coming from a reciprocal system, this may mean that your retirement contribution will stop sooner due to the employer pick-up of contributions after five years of retirement service credit is earned.
Further, if your new system determines your rate of contribution by your age at the time you enter retirement, then your new system will use your entry age from your previous retirement system. By using your "younger" age, your rate of contribution in the new system may be considerably less.
Finally, when you are ready to retire, you must retire from all retirement systems at the same time. You will receive a separate retirement benefit from each reciprocal system. But, each system will use your highest average salary from all systems to calculate your benefit. For example, if you were under CalPERS and then came to KCERA, CalPERS and KCERA will both use your Kern County salary to determine your benefit (if your Kern County salary is the highest).
There are some rules you need to be aware of in order to preserve your reciprocal benefits:
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- It is your responsibility to apply for retirement from all reciprocal retirement systems.
- You must retire from all reciprocal retirement systems on the same day.
- You may not have concurrent service. There must be a clear break in service between one retirement system and another.
- Your break in service between retirement systems may not exceed six months.
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Reciprocity can be a very valuable benefit for those members who qualify. If you have questions about reciprocity or if you think you may be eligible to establish reciprocity, we encourage you to contact the KCERA office to speak with a service representative.
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Retirement Association. All Rights Reserved.
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