Benefit Summary

As a member, both you and your employer contribute to your SJCERA retirement.  Your retirement is a defined benefit plan, providing a lifetime retirement benefit (a pension) based on your age at retirement, years of service credit and final average compensation (FAC).

  • Age at Retirement – Your age at retirement is represented by an age factor—a percentage— based on your age on the first day of retirement (to the nearest completed quarter year).

    Look up your age factor using the Age Factor chart for your tier below.

    Tier 1 Age Factors (summary chart)

    Tier 2 Age Factors (summary chart)
     
  • Service Credit – Service credit measures the time you earned as a SJCERA member. As a full-time, permanent employee, you earn service credit and pay contributions on your “normal working hours.” Every year of paid, full-time work equals one year of service credit.
  • Final Average Compensation (FAC) – SJCERA uses your highest FAC to calculate your retirement benefit. For Tier 1 members, the average is calculated on your highest one year (26 consecutive pay periods) of eligible earnings, not to exceed the Federal annual compensation limit. For Tier 2 members, the average is calculated on your highest three years (78 consecutive pay periods) of eligible earnings, not to exceed the PEPRA annual compensation limits. Visit the Contributions page for more information on contribution limits.
  • Sample Calculation: A General member plans to work 30 years, until age 67 (their full Social Security age) and estimates their monthly FAC will be $6,000. At age 67, the Tier 2 age factor is 2.5%.
2.50% x 30 x $6,000 = $4,500

Age Factor

 

Service Credit Yrs

 

FAC

 

Est Monthly Benefit

Use SJCERA’s Benefit Calculator to estimate your benefit.

Annual Federal Benefit Limit

The Internal Revenue Code Section 415(b) limits the annual benefit amount that SJCERA can pay to a retiree. Only a small number of SJCERA members are affected by the limit, which is indexed annually. If you are a Tier 1 member whose benefit exceeds the limit, SJCERA employers provide a replacement benefit (a Qualified Excess Benefit Arrangement (QEBA) allowed under the Internal Revenue Code) that pays the difference between the IRC limit and the benefit you have earned.

  • 2024 maximum annual benefit limit:      $275,000
    This limit applies if you retire at age 62 or older, retire from the Sheriff's department or a fire department with at least 15 years of service credit, or you receive a disability retirement benefit or a survivor’s benefit due to a pre-retirement death.

  • If you retire under age 62, or do not meet one of the other criteria listed, the benefit limit is lower based on your age at retirement.

415 Benefit Limits

Most SJCERA members can easily calculate their estimated pension with our Benefits Calculator. However, for a few of our members, compensation limits may apply to your pension.

How do limits affect my retirement contributions?

Your pension has limits about how much money you and your employer can contribute each year. Hitting this limit may affect how much you are paid out during retirement. It's important to know these limits so you can understand the best ways to plan and save for your future.

Tier 1 Limits

The Internal Revenue Code Section 401(b)(17) limits the Tier 1 member compensation that can be used to calculate your pension if you first became an SJCERA member AFTER June 30, 1996.

For 2024, the limit is $345,000.

PEPRA (Tier 2) Limits

The California Public Employees’ Pension Reform Act (PEPRA) of 2013 limits the compensation that can be used to calculate your pension if you are a Tier 2 member. * Once you hit that limit, you will stop making contributions until Jan 1 of the following year.

The 2024 Tier 2 Compensation Limits are:

Tier 2 General and Lathrop-Manteca Fire: $151,446

Tier 2 Safety (except Lathrop-Manteca Fire): $181,734

*The IRS sets a lower compensation limit for those Tier 2 positions that contribute to both SJCERA and Social Security.