los angeles county employees retirement association … · 2020-06-02 · † long-term care...

ould you be interested in receivingyour LACERA Spotlight in anelectronic format (E-Zine)?

Visit www.lacera.com and click on the E-Zine Survey and weigh in with youropinion.

LACERA remains committed toproviding superior customer service andexpanding service options for ourmembers. We continue to incorporateadvances in technology to improve theservices we offer. If we can enhanceservice in a “green” sort of way, all thebetter. An E-Zine, published in anelectronic “paperless” format, would bemore ecologically-friendly than atraditional paper newsletter. So let us

know if you’re interested in receiving theSpotlight electronically. We value yourfeedback.

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IN THIS ISSUE:

2 The Executive Desk

3 Legislative Updates

5 LACERA RemembersRichard Tafoya

6 The Value of Medicare Part B

10 LACERA Wellness-Focused Program

11 What’s on the Web

11 Did You Know?

13 Waiting Period Established for Retirees Returning to Service

LACERA Communications PO Box 7060 Pasadena, CA 91109-7060 626-564-6132 1-800-786-6464 [email protected]

LOS ANGELES COUNTY EMPLOYEES RETIREMENT ASSOCIATION JUNE 2007 VOL. 18 NO 2

nder the Pension ProtectionAct of 2006 (PPA), eligibleretired public safety officers

(PSO) may exclude up to $3,000 ofdistributions from their LACERAretirement plan for direct payment ofhealth care premiums, including long-term care premiums.

The following health care plans are nowincluded as “qualified plans” for this taxbenefit under the Pension ProtectionAct of 2006:

• Long-term care insurance fromany carrier

• Firefighters Local 1014 MedicalPlan

LACERA is in the process of preparingmaterials and procedures to implementthese changes. Watch your mail forfuture communication on this matter.For updates and more information onthe PPA visit www.lacera.com.

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UPDATE: PensionProtection Act of2006 — Additional PlansNow Qualify for HealthCare Tax Benefit forEligible Retired PublicSafety Officers

If You Could,Would You E-Zine?

We have linked the IN THIS ISSUE section on the front page of the newsletter to the individual articles. We linked the “Cont’d on . . .” notations as well.

N E W S F O R R E T I R E D M E M B E R S

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hen I think of LACERA, two words come immediately to mind: trust andservice. Everything LACERA is and does is related to one or both of thosewords.

Let’s start with trust. By definition, the retirement fund of the employees of LosAngeles County is a pension trust fund. By that I mean the assets of the fund areheld in trust to finance the retirement benefits of County employees and it isLACERA’s duty to nurture and protect it. As we state in our annual report, “we havethe duty and authority to administer defined retirement plan benefits for theemployees of Los Angeles County and participating agencies.”

LACERA exists to safeguard the trust, both literally and figuratively. Management ofthe fund is controlled by our Board ofInvestments, which authorizes all fundtransactions. The expertise,recommendations, and diligence ofLACERA’s investment professionals aidthe Board in its operations and play a keyrole in the success of the fund. As ofMarch 31, 2007, the fund was valued at$38.2 billion and returned 13.4 percentfor the fiscal year-to-date through March.This represents an approximately $3billion increase in the value of the fund since the end of fiscal 2006. Bysafeguarding its assets, and thus the retirement benefits of County retirees,LACERA upholds the trust fund and your trust in it.

So what does that mean to you? It means you can trust your retirement fund is healthyand strong. It means you can trust that when you retire, LACERA will pay you thepromised benefits… every month for the rest of your life. Plus, it means you canenjoy the additional peace of mind that comes from knowing LACERA will paybenefits to your eligible survivors and beneficiaries.

cont’d on pg. 14

Members of theBoard of RetirementLES ROBBINS

ChairAppointed by the Board of Supervisors

SIMON S. RUSSINVice ChairElected by General Members

WILLIAM DE LA GARZASecretaryElected by Retired Members

MARK J. SALADINOCounty Treasurer & Tax Collector

Ex-Officio Member

SADONYA ANTEBIAppointed by the Board of Supervisors

YVES CHERYElected by General Members

SI FRUMKINAppointed by the Board of Supervisors

ARMANDO MACIAS Alternate MemberElected by Safety Members

EDWARD “ED” C. MORRISAlternate MemberElected by Retired Members

WILLIAM R. PRYORElected by Safety Members

WALTA M. SMITHAppointed by the Board of Supervisors

Members of theBoard of InvestmentsMICHAEL SCHNEIDER

ChairAppointed by Board of Supervisors

WILLIAM R. PRYORVice ChairElected by Safety Members

SIMON RUSSINSecretaryElected by General Members

MARK J. SALADINOCounty Treasurer & Tax CollectorEx-Officio Member

PAUL C. HUDSONAppointed by the Board of Supervisors

DIANE A. SANDOVALElected by Retired Members

HERMAN SANTOSElected by General Members

ROBERT L. SPAREAppointed by the Board of Supervisors

ESTEVAN VALENZUELAAppointed by the Board of Supervisors

Chief Executive Officer

GREGG RADEMACHERAssistant Executive Officer

ROBERT HILLAssistant Executive Officer

JANICE GOLDEN

Los Angeles County EmployeesRetirement Association

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From the EXECUTIVE DESKGregg Rademacher—CEO, LACERA

Editor’s Note: Consult with professional advisors regarding legal, tax, and/or medical matters;LACERA does not offer legal, tax, or medical advice.


...you can trustyour retirementfund is healthy

and strong.

Trust Service

he legislative session is in fullswing with several billsamending the ‘37 Act

moving through the Assembly andSenate. There may be more to follow in2008 after the Governor’s PensionCommission has concluded its work.

Several bills from this session take aconservative approach. AB 775 wouldclose a loophole that allows double, orpossibly triple dipping. AB 36 wouldtighten the definition of fraud againstretirement systems. AB 1255 wouldmake more conservative adjustments tothe Fresno County benefit formulas, andAB 246 would require additional ethicssafeguards on board member activities.

Two bills from this session would extendbenefits. AB 596 would enhance benefitsby providing safety status to physiciansin county hospitals or mental healthfacilities. AB 753 would authorizecompensation to members of the Boardof Retirement for the review of disabilitycases.

This session includes legislative itemsthat are repeat attempts from previousyears. Mandatory retirement hasresurfaced since last year’s mandatoryretirement bill was found to be tooburdensome for all parties toimplement. SB 134 would put a simpleend to mandatory retirement fordesignated personnel in the SheriffsDepartment. Another reincarnation isAJR 5, a resolution to request the Fedsend the Social Security WindfallElimination Provision and GovernmentPension Offset.

To keep our members informed onitems of interest, we will continue toclosely observe legislative developments.A sample of the bills we are currentlytracking follows:

AB 552 – PLACEHOLDER FORGOVERNOR’S PENSIONCOMMISSION RECOMMENDATIONS- Originally contained language thatwould have amended the CountyEmployees Retirement Law bymandating that ’37 Act Counties makeavailable health care coverage toqualified retired members at a rate thatdoes not exceed 102 percent of theactive employee rate.

LACERA has been advised by theconsultant to the Assembly PE, R & SSCommittee that these provisions will notbe moved this year. This bill is aplaceholder for any items that may comeout of the Governor's Public EmployeesPost-Employment Benefits Commission.Author: HernandezIntroduced: February 21, 2007Sponsor: California Retired County

Employees AssociationStatus: In the AssemblyLACERA Position:Board of Retirement – WatchSACRS Legislative Committee Position:Watch

AB 596 – SAFETY MEMBERSHIP FORCOUNTY JAIL AND MENTAL HEALTHPHYSICIANS - Would require, as ofJanuary 1, 2008, physicians working in acounty jail or county mental healthfacility in Alameda County or LosAngeles County to be classified as safetymembers, without a board of supervisorsresolution. Additionally, the bill wouldallow those members to elect not tobecome safety members.

The bill provides that a qualifiedmember enters safety status and begins

2007 Legislative Updates

cont’d on pg. 12

AB 36 - FRAUD - Would make it a crimefor any person to make false statementsor representations in order to seek orobtain benefits from PERS, STRS, or a‘37 Act System for themselves or others.“Statement” would include any oral orwritten statement relating to familyrelationship, injury reports, and medicalrecords. The bill would also make it acrime for someone to accept paymentfrom the system with the knowledge heor she is not eligible for the benefit. Thisis a two-year bill and will not be revisiteduntil January of 2008.Author: NielloIntroduced: December 4, 2006Sponsor: CalPERSStatus: In the AssemblyLACERA Position: Board of Retirement – Support

AB 246 - BOARD MEMBER ACTIVITIES- Would amend the County EmployeesRetirement Law to restrict members ofboth boards from specified marketingactivities. The bill would prohibit amember or employee of either board,whether directly or indirectly, by himselfor herself, or as an agent or partner oremployee of others, from selling orproviding any investment product thatwould be considered an asset of thefund, to any public retirement system inthe state. Author: TorricoIntroduced: February 1, 2007Sponsor: TorricoStatus: In the SenateLACERA Position:Board of Retirement – SupportBoard of Investments – SupportSACRS Legislative Committee Position:Oppose unless amended

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cont’d on pg. 5

he Los Angeles PublicLibrary’s Central Library,located downtown in the

landmark Goodhue Building, is lookingfor volunteers to lead tours of itshistoric building and the wealth ofresources it houses. The facility offers a

variety of tours, including those of thestructure’s exquisite art andarchitecture; surrounding gardens;special resources for young children,preteens, adolescents; and tours forthose learning English as a secondlanguage.

Volunteers select the specific tours theywish to lead on a monthly basis; a two-year commitment for 24 tours per yearis requested. Free parking is provided.Free training classes will be held inSeptember and October. For moreinformation, call (213) 228-7283 or visitwww.lapl.org/central/tours.html.

L.A. Public Library Seeks Docents

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Medicare Advocacy Group Needs Volunteer Counselorsou can help put the “care” inMedicare by becoming aVolunteer Counselor to help

Medicare beneficiaries understand therules of Medicare and utilize thesystem. No insurance experience isneeded; all you need is patience, goodlistening skills, and the ability tocommunicate complex informationclearly and effectively. Free training willbe provided.

The Health Insurance Counseling and

Advocacy Program (HICAP) of theCenter for Health Care Rights needsVolunteer Counselors to provide freeinformation and advocate for Medicarebeneficiaries at community placementsites throughout Los Angeles County.

The Center for Health Care Rights is anindependent, non-profit consumeradvocacy organization assistingMedicare beneficiaries in Los AngelesCounty through education, individualcounseling, and legal advocacy. HICAP

is funded, in part, by the Los AngelesCity and County Area Agencies onAging, through the Older CaliforniansAct.

Interested? Call the Center for HealthCare Rights at 1-800-824-0780, ext.3021.

(NOTE: The Center for Health Care Rightsis not affiliated with LACERA or LACERA-administered health care programs.)

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t’s never a good policy toinclude your social securitynumber on any email. When

you email LACERA, there’s no need toinclude your social security number; wehave your number and other personalinformation on file. Although weremain dedicated to the security of our

online network and submit it to securityaudits, there’s always some risk attachedto transmitting confidentialinformation via the internet.

LACERA welcomes your email forquestions regarding retirement benefitsand requests for related information.

(Including your employee number inyour email is a good idea.)

Email your inquiries [email protected].

Remember: To safeguard your privacy, it’sbest to leave your Social Security Number offall email correspondence.

IDon’t Include Your Social Security Number on Email

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e occasionally get requestsfrom members to providecontact information on

former co-workers or other members.Unfortunately, we cannot honor thoserequests. To safeguard our members’privacy and security, LACERA cannotforward letters from one member toanother, nor can we provide amember’s contact information toanother member.

However, here are a couple oforganizations that may be able to assistyou:

If you are a member of RetiredEmployees of Los Angeles County(RELAC) and you’re looking for afellow RELAC member, RELAC will(after verifying both parties’membership) call the member you’reseeking and let the individual know youare trying to reach him or her andprovide your contact information.

RELAC will also forwardcorrespondence from one RELACmember to another. For moreinformation, call 1-800-537-3522.

The Los Angeles County ProfessionalPeace Officers Association (PPOA) alsoassists in connecting fellow retirees. Ifyou’re a PPOA member looking for afellow PPOA member, call Greg Torresat 1-800-747-PPOA.

WLost Touch with a Fellow Retiree?

e honor the memory of former LACERABoard member Richard M. Tafoya, whoserved on the Board of Retirement from

1992 through 1994 and on the Board of Investmentsfrom 1995 through 1997. In 1997 he held the positionof Secretary of the Board of Investments.

Extremely civic and community-minded, Mr. Tafoya was also aformer mayor and councilmanfor the City of Montebello, aformer board member for theCrippled Children’s Society, andCharter President of theMexican-American Junior Chamber of Commerce. Hewas also active in community assistance programs,having served as Southern Regional Manager for theState of California Office of Economic Opportunity andas Director of the West San Gabriel Valley Consortium.

Mr. Tafoya leaves a rich legacy of service to LACERAand the community.

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LACERA RemembersRichard Tafoya

eeking new challenges and adventures? Tired ofcomplaining about government waste andincompetence? Want to add more meaning to your life?

The Grand Jury is looking for a few good citizens to serveas jurors. The main function of the Civil Grand Jury is toinvestigate county, city, and joint-power agencies. Jurorsshare in a stimulating experience, while providing avaluable service to the community.

For more information, call (213) 893-1047 or visitwww.grandjury.co.la.ca.us. The Grand Jury compensates at$60 per day of service, plus mileage.

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The Civil Grand JuryNeeds You!


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ACERA is dedicated toproviding you with theinformation you need to best

utilize your LACERA-administeredhealth care benefits. Insurance plansand their regulations can seem quiteoverwhelming and we’d like to helpclear up any possible confusionregarding Medicare and some LACERA-administered health care plans.

For example, did you know thatMedicare coordinates coverage withsome LACERA-administered health care

plans? We explain how in “The Value ofMedicare Part B.”

The article also explains the CountyPart B Reimbursement Program whichreimburses the standard rate amount ofMedicare Part B premiums for eligibleLACERA members and dependents.

In “LACERA to Launch Wellness-FocusedProgram,” we announce our plans tolaunch a new program designed to giveyou useful information and tips on howto live a healthy and active lifestyle.

In these pages, you’ll also findinformation on our 2007 Annual HealthCare Packet and on the administrativerule that governs survivors’ health carecoverage.

As a LACERA retiree you have access tovaluable health care coverage. We wantyou to understand your coverage so youcan get the most out of your health careplan. But most of all, we want you tostay healthy!

LTO YOUR HEALTH!

ealth care information isoften complex and knowingwhat choice to make when

you become eligible for Medicare can bedifficult. This article will discuss theadvantages and disadvantages ofenrolling in Medicare Part B.

You should enroll in Medicare Parts Aand B as soon as you are eligible; thiswill help you avoid late penalties whichmay apply should you later decide toenroll. If you are enrolled in MedicareParts A and B, most coverage will becoordinated with your LACERA-administered health plan. If you have 40qualified work quarters during whichMedicare Health Insurance Tax (HIT)was paid, there are no premiums forMedicare Part A. For additional

information, you may contact the SocialSecurity Administration (SSA) atwww.socialsecurity.gov or 1-800-772-1213.You will automatically be enrolled inMedicare Parts A and B when you enrollin Medicare, but you may elect todecline Part B. In making an informedchoice, you should know the advantagesand disadvantages of enrolling or notenrolling in Medicare Part B.

Medicare Part A covers hospital servicesand Part B covers outpatient andprofessional services such as doctorvisits, X-ray and lab services, ambulanceservices, physical and speech therapy,durable medical equipment (i.e.,oxygen, wheelchairs, and walkers) andsome preventive care, which arecoordinated with most of the LACERA-

administered health plans.

2007 Medicare Part B PremiumStructureEffective January 1, 2007, Part Bpremiums are income-based, subject toyour prior two years of income taxfilings with the Internal Revenue Service(IRS). You can choose whether or not toenroll in Part B; however, if you doenroll in Part B and in one of theLACERA-administered Medicare plans— Blue Cross Plan III, Kaiser SeniorAdvantage, PacifiCare, Secure Horizons,SCAN, or CIGNA Health Care forSeniors — your Part B premiumstandard rate will be reimbursed by theCounty (subject to annual review by theBoard of Supervisors).

The Value of Medicare Part B

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cont’d on pg. 7

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The Value of Medicare Part Bcont’d from pg. 6

Advantages of Enrollment in MedicarePart BIf you are enrolled in Medicare Parts Aand B and a LACERA-administered Non-Medicare plan:

• Suppose you have Part B and areenrolled in LACERA-administeredBlue Cross Prudent Buyer or BlueCross I, II Plan; Medicare andBlue Cross will coordinatecoverage for services. That meanswhen you visit your doctor, onceyou’ve met your deductible,Medicare Part B will pay 80percent of eligible services andBlue Cross will pay a portion ofthe remaining balance of eligibleservices, according to each plandesign. That leaves you with asmall out-of-pocket expense. Overtime, Medicare Part B may helpreduce your overall health carespending depending how oftenyou use the covered services.

• You are subject to the LifetimeBenefit Maximum of one (1)million dollars coverage for BlueCross Plans I, II, and PrudentBuyer Plan, alone or combined.“Combined” means any benefitspaid under a prior LACERA-administered Blue Cross plan willreduce any maximum amountseligible for the current Blue Crossplan. With Part B coverage payingmost of your eligible medicalservices, it will help you reachyour Maximum Lifetime Benefitat a slower pace.

• If you have a LACERA-administered Non-Medicare HMOplan, you agree to receive coveredservices from the plan; and inmost situations there is nocoordination of coverage betweenyour Medicare and the LACERA-administered HMO plan.

If you are enrolled in Medicare Parts Aand B and a LACERA-administeredMedicare plan:

• Suppose you have both MedicarePart B and Blue Cross III Plan;Medicare and Blue Cross willcoordinate coverage for services.That means when you visit yourdoctor, Medicare Part B will pay80 percent of eligible services andthe Blue Cross III Plan will pickup the remaining 20 percent ofeligible services. That leaves littleor nothing for you to pay out-of-pocket. Over time, Medicare PartB may help reduce your overallhealth care spending. In addition,you are not subject to the LifetimeBenefit Maximum of one (1)million dollars that applies to theother Blue Cross plans.

• If you have a LACERA-administered Medicare Advantage

cont’d on pg. 9

The following chart applies to members with Medicare Part A and Part B who are enrolled in a LACERA-administeredMedicare plan:

County Reimbursement Schedule for 2007 Medicare Part B Premiums

2007 Medicare Part B 2007 County Medicare Part BIncome Premium Monthly Rates* Premium Reimbursement Program

Monthly Amount**

$0 – $80,000 $93.50 (base rate) $93.50 singles and $187.00 for two parties (base rate)

$80,001 – $100,000 $105.80 $93.50

$100,001 – $150,000 $124.40 $93.50

$150,001 – $200,000 $142.90 $93.50

Over $200,000 $161.40 $93.50

*Rates shown are for those who file an individual tax return. For rates for other filing statuses, check www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227).

**Subject to annual approval by the Board of Supervisors.


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: RETIREE HEALTH CAREQ: I am a retiree. If I die, will health care coverage extend to my eligible survivors?

A: If a retired LACERA member dies while covered by a LACERA-administered health plan, his/her eligible survivors maycontinue health plan coverage. The following outlines the administrative rule:

• When an eligible surviving spouse, domestic partner, or child notifies LACERA of a member’s death and is eligible forcontinuing retirement benefits, he or she will be mailed a packet of information. LACERA must be notified within 30days of the event; otherwise he or she is subject to the rules for Late Enrollment.

• The basic rules for Late Enrollment include a six-month wait for medical and a one-year wait for dental/vision, from thedate LACERA receives the enrollment form. Health care benefits for eligible dependents are continuous, provided theindividuals were covered as dependents under the deceased member’s plan.

• If a surviving spouse, eligible domestic partner, or dependent child is not eligible for continuing health care benefits,but has been continuously covered under your health care plan, he or she will be mailed a packet containinginformation about continuing health care coverage through the ConsolidatedOmnibus Budget Reconciliation Act of 1985 (COBRA).

• If a surviving spouse, eligible domestic partner, or dependent child is eligiblefor continuing health care benefits, but was not continuously covered as adependent under your LACERA health care plan and now wishes to becovered, he or she is subject to the rules for Late Enrollment (see above forthe basic rules).

• If an eligible survivor is covered under a LACERA-administered health careplan and remarries, the survivor’s eligible new dependents can be added tothe plan, provided LACERA is notified within 30 days of the date ofacquisition (i.e. marriage, birth adoption, etc.). However, when the eligiblesurvivor dies, his or her eligible dependents will no longer be eligible forcontinued coverage through a LACERA-administered health care plan, exceptfor a limited period of time through COBRA.

• If your eligible survivors are required to pay premiums for coverage, they willbe notified accordingly.

Visit www.lacera.com for additional Health Care FAQs, along with FAQs on other topics of interest to retirees, includingCOLA, Retirees-Dissolution of Marriage, Medicare, Tax Considerations, Post-Retirement Death Benefits, etc.


Quote:

“Age is strictly a case of mind over matter. If you don't mind, it doesn't matter.” — Jack Benny

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Prescription Drug Plan (MA-PD)such as Kaiser Senior Advantage,you assign Medicare Parts A, B,and D to your medical plan, andmust receive all covered servicesdirectly from the plan.

• Currently, the County reimbursesthe 2007 Medicare Part B standardrate of $93.50 for all LACERA-administered Medicare Planenrollees, subject to annual reviewand approval by the Board ofSupervisors.

Disadvantages of NOT Enrolling inMedicare Part BApplies only if you are covered for MedicarePart A, but not enrolled in Medicare Part Band have a LACERA-administered medicalplan:

• If you decide not to purchaseMedicare Part B when you becomeeligible, your plan will notcoordinate coverage for Medicare

Part B services. That means you’llcontinue to pay for those servicesand equipment as you did beforeyou become eligible for Medicare.For example, under the BlueCross Plan II, a doctor’s office visitwill be covered at 80 percent afteryour deductible. You would beresponsible for the remaining 20percent.

• Without Medicare Part B, youwould continue to incur thesecosts until you hit your out-of-pocket maximum on Blue CrossPlan II ($2,500 per calendar year,including deductible). If you haveBlue Cross Plan I or PrudentBuyer Plan, you will continue toincur the costs into the futurebecause there is no out-of-pocketmaximum.

• You are subject to the one (1)million dollar Lifetime Maximum

coverage for the Blue Cross plansI, II, and Prudent Buyer Plan,alone or combined. “Combined”means any benefits paid under aprior LACERA-administered BlueCross plan will reduce anymaximum amounts eligible for thecurrent Blue Cross plan.

• Without Medicare Part B, you areineligible to enroll in a LACERA-administered Medicare plan.Thus, you are disqualified fromparticipating in the County’sMedicare Part B PremiumReimbursement Program.

• If you are eligible, but are notenrolled in Medicare Part B andhave a LACERA-administeredHMO plan, you may pay a higherpremium.

• Finally, if you decide not to enrollin Medicare Part B when youbecome eligible at age 65, and


he 2007-2008 LACERA-administered Health Care annual packet, mailed at the end of May, contains the followingimportant health care benefits information:

• Welcome Letter from Gregg Rademacher, LACERA CEO

• Benefits Update: Provides information about premium rates effective July 1, 2007 and important changes tothe LACERA-administered Health Care Benefits Program for the 2007-2008 plan year.

• Benefits Guide: Presents an overview of the LACERA-administered health plans, details about administrativerules and procedures, and insurance carrier contact information.

• Rate Booklet: Details monthly contribution rates, effective July 1, 2007, for all LACERA-administered healthplans, except Out-of-Area plans (will be mailed under separate cover).

• Notice of Creditable Coverage: Official statement indicating your LACERA-administered medical plan iscreditable, meaning your prescription drug coverage is, on average, as good as if not better than thestandard Medicare Part D model plan.

The annual packet information is available in the Brochures & Forms section of www.lacera.com.

TYou Should Have Your Annual Health Care Packet

cont’d on pg. 10


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e want you to live long and well! That’swhy we’re expanding our focus tolaunch a program that promotes

healthy lifestyles, reduces risks of disease, and isaccessible to the maximum number of ourmembers. We believe this new program, as yetunnamed, will equip you with the knowledge andtools required to adopt and maintain a healthyand active lifestyle.

At this time, we are working to create a programfeaturing workshops held on a choice of dates atvarious locations throughout the County. You’llalso see additional pages filled with wellness-related material in the Spotlight as we go forward.

Details on this exciting new program will beannounced in upcoming Spotlight issues and onwww.lacera.com.

As always, we will continue to keep you updatedon matters involving your LACERA-administeredhealth care plans.

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LACERA to LaunchWellness-FocusedProgram

later decide to enroll, you will becharged a penalty of 10 percentfor each year you were eligibleand chose to decline coverage. Ifyou are a late enrollee inMedicare Part B and pick one ofthe plans eligible forreimbursement, the County will

not reimburse the penalty portionof the Part B premium.

Ultimately, the decision is yours. It isworth considering enrolling in MedicarePart B as soon as you are eligible to toavoid penalties for late enrollment.Additionally, enrolling in Medicare PartsA and B and a LACERA-administered

Medicare plan will qualify you for theCounty’s Medicare Part B PremiumReimbursement Program andcoordination of benefits with Medicare.

NOTE: Some benefit informationmentioned above may be subject tofuture changes.


(Lunch is not included, but health tips are.)

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uick answers to hundreds of commonly asked questions are available on www.lacera.com. Our FAQ (FrequentlyAsked Questions) section offers popular questions and answers, sorted by category:

Get Instant Answers to General Questions!“Ask LACERA” is another great online answer source. This feature can be accessed from our home page and provides severalways to find the information you seek:

• Displays top twenty questions by popularity• Click on question to reveal answer

• Allows you to type a question or keyword in the Search Box• Search yields list of related questions• Click on question to reveal answer

• Permits you to submit a general question• Answer will be emailed to you

Links to the FAQs and to “Ask LACERA” appear on our home page.

• New Member• Active Member• Retired Member

• ARC• Plan Transfer• Retiree Health Care

• Beneficiary• PSO• General Information

heck www.lacera.com for the latest information on all thingsLACERA. The site contains retirement benefit information gearedto retirees and beneficiaries.

Visit the Benefits section of www.lacera.com and click on Retired Member toview information specifically for retirees, including Retiree Payday Calendar,STAR COLA 2007, Direct Deposit, Changing Your Personal Information,Phone Services, FAQs for Retired Members, and more!

Visit often; stay as long as you’d like!

CWhat’s on the Web…

Did You Know?Defined Benefit (DB) Plans

LACERA invests the funds; the employer bears the risk of adverse investment performance.

Defined Contribution (DC) Plans

Employee decides how to invest the funds and bears the risk of adverse investment performance.

QGot Retirement-Related Questions? The Answer is Usually a Click Away.


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2007 Legislative Updates cont’d from pg. 3

paying retirement contributions at thesafety member rate on the date the billbecomes operative. However, indescribing the method for calculatingthe member’s retirement allowance,the bill provides that qualifying serviceworked prior to enactment shall becalculated under the safety memberbenefit formula. AB 596 is a two-yearbill and will not be revisited untilJanuary of 2008.Author: DymallyIntroduced: February 21, 2007Sponsor: Union of American

Physicians and Dentists Co-Sponsor: AFSCME Status: In the AssemblyLACERA Position:Board of Retirement – Oppose SACRS Legislative Committee Position: Watch

AB 753 – BOARD MEMBERCOMPENSATION - Would authorizecompensation to members of a Boardof Retirement for their review ofdisability cases.Author: Assembly Committee on

Public Employees, Retirement, and Social Security

Introduced: February 22, 2007Status: In the SenateLACERA Position: Board of Retirement – SupportSACRS Legislative Committee Position: Watch

AB 775 – UNEMPLOYMENTINSURANCE - Would close a loopholethat allows retired employees to collectunemployment insurance when their

Sponsor: SACRSStatus: In the SenateLACERA Position:Board of Retirement – Support

AB 1255 – FRESNO COUNTY BENEFITTIER - Would permit the Board ofSupervisors of Fresno County to adopt anew benefit tier applicable to membersfirst employed by the county on andafter the date these provisions becomeoperative in the county.

In approximately 2001, the FresnoCounty Board of Supervisors adopted a3.25 percent @ 60 benefit level foremployees of the County. It has beendetermined the contribution ratessupporting this benefit level are toocostly. Through contract negotiationsbetween the county and the local SEIUbargaining unit, it was agreed newemployees to the county would enter at a2 percent @ 55 benefit tier. This bill addsFresno County to the Government Codesection authorizing that benefit.Author: ParraIntroduced: February 23, 2007Sponsor: SACRSStatus: In the SenateLACERA Position: Board of Retirement – WatchSACRS Legislative Committee Position: Watch

AB 1626 – PLAN E SERVICECREDIT/PENSION PROTECTIONACT CONFORMANCE - Wouldauthorize the County Board ofSupervisors to specify the types of servicecredit that may be purchased by non-contributory members in Los Angelesand Santa Barbara Counties.

period of reemployment is terminated.AB 775 requires a retired member whoaccepts an appointment after receivingunemployment insurance compensationto terminate that employment on the lastday of the current pay period;furthermore, it prohibits reappointmentfor a period of 12 months.

Author: NielloIntroduced: February 22, 2007Sponsor: Sacramento CountyStatus: In the SenateLACERA Position: Board of Retirement – SupportSACRS Legislative Committee Position: Support

AB 1124 – POST-EMPLOYMENTBENEFITS TRUST ACCOUNT,TECHNICAL CLARIFICATIONS -During the 2006 legislative session, theState Association of County RetirementSystems (SACRS) sponsored legislationto authorize the Board of Supervisors tomake contributions to a Post-Employment Benefits Trust Account andto enter into an agreement with theretirement association to invest thosefunds. Such a Trust Account could beused to pre-fund various welfare benefitsplans, including retiree health careplans.

AB 1124 is being sponsored by SACRSduring the current legislative session tomake technical clarifications andcorrections to the prior legislation. Thebill was amended on April 23, 2007 toallow the Board of Supervisors to alsouse a Post-Employment Benefits TrustAccount for the purpose of pre-fundingsupplemental benefits plans.Author: KarnetteIntroduced: February 23, 2007

cont’d on pg. 15

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fter retiring, some membersreturn to work for L.A.County on a temporary

basis. The County EmployeesRetirement Law (CERL) allows theCounty to hire a LACERA retiree whothe employer believes possesses specialskills or knowledge. Examples of thismay include hiring the retiree to train asuccessor or having a retiree assist intimes of staffing shortages.

120-Day RuleAccording to Government CodeSection 31680.6, an eligible retiree mayreturn to work for the County for aperiod of up to 120 days (960 hours inany 12-month period) and continue toreceive his/her retirement allowance.During this post-retirementemployment, however, the memberwill not accrue any additional LACERApension benefits, nor will the memberor the employer pay contributions forthis service.

Certain Conditions Apply IRS regulations require the retiree tohave a “bona fide” separation fromservice (truly retire) before beingrehired. For example, an activemember who retires on Friday and isrehired on Monday is viewed by theInternal Revenue Service (IRS) as neverhaving left employment.

To protect LACERA’s tax qualifiedstatus, in August 2006, the Board ofRetirement (BOR) enacted Resolution06-001 which establishes a 90-daywaiting period following retirement forretirees under Normal Retirement Agewho are returning to work. Thedeclaration also defines Normal

Retirement Age and sets forth eligibilityguidelines:

Normal Retirement Age for membersof LACERA shall be:

• Age 57 for general contributorymembers

• Age 65 for general non-contributory members

• Age 55 for safety members

A member who retires beforereaching Normal Retirement Agecannot have a prearranged agreementto return to work for the employer.

• Includes written and oralagreements

• Applies regardless of the lengthof the member’s break in serviceafter retirement

• Applies to employers whoseemployees participate in LACERA

A member who retires before reachingNormal Retirement Age must have atleast a 90-day continuous break inservice before returning to service as aretiree.

• Break will be calculated from thedate of the member’s retirementto the date preceding the first dayof reemployment as a retiree

• Applies to employers whoseemployees participate in LACERA

IRS penalties may apply to retireesunder age 59.5 who have not had a“bona fide” separation fromservice and are engaged in post-

retirement work with the County.For information pertaining to yourindividual situation, consult with aprofessional advisor; LACERA doesnot offer tax or legal advice.

Note: The 120-Day Rule and BORResolution 06-001 apply only to

retired County employees who returnto work for the County. Theserestrictions do not apply to Countyemployees who retire and later workin the private sector.

For questions on LACERA’s regulationsregarding retirees returning to service,call 1-800-786-6464 to speak with aRetirement Benefits Specialist.

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Waiting Period Established for Retirees Returningto County Service


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That brings me to the issue of service.As the administrator of your retirementplan benefits, we are dedicated toproviding to you with the highestpossible level of service. Our multi-faceted approach to customer serviceincludes education and communicationprograms, along with reliable paymentof the promised benefits.

Our educational services begin with theclear and concise materials we providenew members to assist them in selectingthe retirement plan best suited to theirindividual needs. They continuethrough the informative mid-career andpre-retirement workshops we hold atLACERA and at various jobsitesthroughout the County.

To keep our members updated on thelatest LACERA news, we publishquarterly newsletters for active members

and retirees. We also provide brochuresdetailing each of our retirement plansand services. Our web site,www.lacera.com, is a handy onlineresource for the latest retirement-related news. Our Ask LACERA webfeature generates immediate answers togeneral questions you enter online.Interactive calculators are also availableon our web site to assist you inestimating the amount of yourretirement allowance and the cost totransfer retirement plans, and/orpurchase Additional Retirement Credit(ARC).

“My LACERA” is another useful onlineresource available to all members. Itallows you to access your personalLACERA account information 24/7; allthat’s required is a quick, one-timeregistration.

For one-on-one service, we operate aCall Center and a Public Counter whereour knowledgeable Retirement BenefitsSpecialists are on hand to answer yourpersonal questions. Our Public Counterserves members on a first come, firstserved basis Monday through Fridayfrom 7:00 a.m. to 5:00 p.m. For answersto personal questions by phoneweekdays from 7:00 a.m. to 5:30 p.m.,call 1-800-786-6464 to speak with aLACERA expert.

This brings me to where I began —trust and service serve as LACERA’sframework. I close with another quotefrom our annual report: “We arevigilant in our efforts to provideexcellent customer service to 147,000members and over 51,000 benefitrecipients.”

From the Executive Deskcont’d from pg. 2

OREH L.A. is seeking volunteer “reading partners” to devote one hour per week to helpchildren from Pre-K to the fourth grade improve their reading skills. The childrenin this program have been identified by their teachers as “reluctant readers;”

most are from low income families. Reading partners read and listen to theirstudents and guide them through difficult chapters or intimidating words.

Sharing your passion for books could change a child’s life! KOREH willtrain you; the organization has trained and placed more than 5,500 readingpartners in nearly 100 LAUSD elementary schools throughout the city andSan Fernando Valley. To volunteer or for more information call (323) 761-8153.

KVolunteer to Help a Child Read

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2007 Legislative Updates cont’d from pg. 12

This bill would additionally prohibit anon-contributory member whopurchases Additional Retirement Credit(ARC) from counting that credit towardmeeting the minimum qualifications fora disability retirement.

The bill was amended on April 9, addingprovisions that would allow the Board ofRetirement to set “normal retirementage” and to certify certain LACERAmembers as falling within the definitionof a “Public Safety Officer.” The purposeof these provisions is to aidimplementation of the PensionProtection Act of 2006.Author: GalgianiIntroduced: February 23, 2007Sponsor: SACRSStatus: In the AssemblyLACERA Position: Board of Retirement – Support

SB 14 - MILITARY SERVICE - Existinglaw authorizes a board of supervisors toallow a member to receive credit fortime while absent from service and

serving in the armed forces if, amongother things, the military service is notthe basis for present or future militaryretirement pay. This bill would amendthe government code to authorize theboard to allow a member to receiveservice credit whether or not his or hermilitary service is the basis for present orfuture military retirement pay.Author: McLeodIntroduced: December 4, 2006Sponsor: National Guard Association

of CaliforniaStatus: In the SenateLACERA Position:Board of Retirement – Watch

SB 134 - MANDATORY RETIREMENT -Would amend the County EmployeesRetirement Law to exempt safetymembers of the Sheriffs Departmentfrom the requirement to retire by aspecific age. The bill further requiresthat a physician employed by the Countycertify the member is capable ofperforming his or her assigned duties,pursuant to standards set forth by the

County. This bill applies to Los AngelesCounty only and is at the option of theBoard of Supervisors.Author: CedilloIntroduced: January 25, 2007Sponsor: Los Angeles County and

Los Angeles County Sheriffs

Status: In the AssemblyLACERA Position: Board of Retirement – WatchSACRS Legislative Committee Position: Watch

AJR 5 - SOCIAL SECURITY - Requeststhe President and the Congress of theUnited States to enact the Social SecurityFairness Act, which would repeal theGovernment Pension Offset and theWindfall Elimination Provision from theSocial Security ActAuthor: HernandezIntroduced: February 1, 2007Status: In the SenateLACERA Position:Board of Retirement – Support

Become an Advocate for an Abused Childourt Appointed SpecialAdvocates of Los Angeles(CASA) is currently recruiting

volunteers to be trained to investigatethe circumstances of children who havebeen removed from their homes due toabuse or neglect and placed inprotective custody. CASA volunteersadvocate for the best interest of foster

children both in court and in thecommunity. Volunteers must be at least21 years old, be able to make a one-yearcommitment to the program, undergoa background check, and successfullycomplete a 36-hour CASA trainingprogram. An average of five hours perweek is spent on case activities.Bilingual (Spanish/English) and

African American volunteers areespecially needed. Volunteers arerequired to attend an orientationsession before beginning the training.

For additional information, call (323)526-6666 or visit www.casala.org. CASAof Los Angeles also has a satellite officein the Antelope Valley.

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PO BOX 7060PASADENA, CA 91109-7060

StandardPresorted

U.S. Postage

PAIDVan Nuys, CA

Permit No. 987

Contributing Writers: Barbara Gordon, Cynthia Lau, Nicholas Dinger Editor: Jeannine Smart Design: Allen Helbig

Editor’s Note:Spotlight on Retirement is created by the staff of LACERA. Signedarticles represent the opinion of the writers and not necessarily theopinion of LACERA Management, Board of Retirement, or Boardof Investments.

Email:[email protected]

“Ask LACERA”— Get instant answers togeneral questions. Find it on lacera.com’s home page.

June 2007 SpotlightHighlights

• Trust and Service are LACERA Hallmarks• Value of Medicare Part B • What’s on the Web• Health Care FAQ • If You Could, Would You E-Zine?• Waiting Period for Retirees Returning to Service

los angeles county employees retirement association … · 2020-06-02 · † long-term care...

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