To provide additional levels of security, VCERA has implemented Multifactor Authentication (MFA) on our Member Portal. MFA will assist with prevention of cybersecurity incidents, protect your personal information, and further secure your data against identity theft. MFA requires you to provide two forms of authentication (Member Portal password and one-time PIN code), before access to the Member Portal is granted.
Only members who have a registered account on the Member Portal (https://members.vcera.gov/) will receive a verification code during each log in. The verification code will contain a one-time PIN code that you will input on the User Device Registration screen on the Member Portal. If you do not receive the verification code, please check your spam/junk folder(s) or contact VCERA at 805-677-8700.
One of the factors used to calculate your retirement benefit is your final average compensation (FAC), which is based on your benefit tier and/or hire date. The time period in which your FAC is earned is called your “measurement period”:
For Safety Tier 1 and General Tier 1 members: Highest 12 consecutive months (26 pay periods) of “compensation earnable,” as defined in Government Code section 31461.
For all other members:
Hired prior to January 1, 2013: Highest 36 consecutive months (78 pay periods) of “compensation earnable,” as defined in Government Code section 31461.
Hired on or after January 1, 2013: Highest 36 consecutive months (78 pay periods) of “pensionable compensation,” as defined in Government Code section 7522.34.
Vacation Buydown / Annual Leave Redemption
Government Code Section 31461(b)(2) instructs VCERA to limit the number of annual leave or vacation redemption hours that may be included in retirement compensation to the maximum redeemable hours allowed by Memorandum of Agreements (MOA) for each calendar year. As a reminder, for PEPRA members, Vacation Buydown/Annual Leave Redemption is not includable in final average compensation.
Depending on membership type, VCERA will look at the highest 12 or 36 consecutive months of compensation at retirement. Within that highest measurement period, VCERA will include the number of redeemed leave hours that the applicable MOA allows a member to redeem. For example, if a member’s MOA allows a maximum leave redemption of 200 hours per calendar year, then VCERA will only include up to 600 hours of redeemed leave in a 36-month measurement period for purposes of retirement compensation. Please refer to your appropriate MOA to locate your specific annual vacation redemption limit.
Although the California Supreme Court’s Alameda Decision touched all CERL retirement systems, VCERA was particularly impacted. The ruling affected multiple parts of VCERA’s operations, most importantly the recalculation of retirement benefits. To help members and stakeholders better understand the Alameda Decision, its broad impact and its implementation, VCERA has produced Frequently Asked Questions (FAQs) and a Glossary of Terms. All of the terms in the Glossary are used in the FAQs, so referring to the documents simultaneously is encouraged.
In April 1999, the Board of Retirement revised its Disability Hearing Procedures, which governs VCERA’s disability process and includes definitions, rules, roles, policies and procedures. In July 2020, the Board approved VCERA’s Disability Retirement Process Document, which sets forth a new disability model applicable to all new applications as of July 27, 2020. And in July 2023, the Board approved New Model Hearing Rules, applicable to all applications directed to hearing under the New Model. The goal of these documents is to provide a fair and impartial method under CERL for processing disability applications expeditiously.
VCERA’s new disability model seeks to accomplish this objective through a full, in-house, independent investigation of disability applications. VCERA’s inquiry will involve the applicant, department, independent medical examiner, treating physicians and others. After the investigation, VCERA will draft a recommendation to the Board, which can grant the disability application, in whole or in part; remand it to staff for further investigation; refer the matter to hearing; or take any other action it deems appropriate. Staff recommendations to deny will be directed to evidentiary hearing automatically.
Additional information about VCERA’s disability process can be obtained by clicking the links below or contacting VCERA’s Disability Retirement Division at (805) 339-4250 or disability@vcera.gov.
When the California Supreme Court issued the Alameda Decision on July 30, 2020, it ruled that retirement boards do not have the discretion to include in Legacy members’ compensation earnable “in-kind” benefits. As determined in prior case law, “flex credit” payments that are applied to healthcare-related benefits are considered to be in-kind payments. Accordingly, flex credit amounts that cannot be received by employees in unrestricted cash must be excluded from compensation earnable. These in-kind payments are examples of an “Alameda Exclusion.”
Flexible Benefits Program – Old and New Structures
For decades, the County of Ventura offered its employees in-kind benefits under its Flexible Benefits Program. In 2023, the County modified the program to ensure it complied with regulatory requirements. The “maximum cashable amounts” under both program structures differ, as explained below. The maximum cashable amounts are considered pensionable for Legacy members; no portion of flex credit is pensionable for PEPRA members.
Under the old Flexible Benefits Program structure, all employees were paid a flex credit allowance to help subsidize their health insurance premiums. Those who opted out were charged an opt-out fee. The maximum cashable amount of the flex credit allowance was equal to the “employee-only” or “flat” flex credit allowance minus the lesser of the opt-out fee or lowest-priced medical plan.
Under the new Flexible Benefits Program structure, employees receive either a flex credit allowance or an opt-out allowance. There is no longer an opt-out fee. The maximum cashable amount for all members within the same bargaining unit (i.e., union) is equal to the opt-out allowance.
Legislative and Board Actions on Flex Credit
In 2021-2022, legislative efforts to include the full flex credit allowance in Legacy members’ retirement earnings failed. As a result, VCERA must implement the Alameda Decision by excluding from final average compensation (FAC) the non-cashable portion of flex credit that had formerly been included in FAC. On April 17, 2023, the Board of Retirement passed a resolution permitting the inclusion of the maximum cashable amounts of flex credit under the old and new program structures in members’ FACs.
For Legacy members who retired on or after July 30, 2020, VCERA must recalculate their FACs and monthly retirement benefits to exclude any portion of flex credit payments deemed non-pensionable. The charts linked below will enable affected members to estimate the impact of these flex credit changes on their future retirement benefits.
Using “Estimated Impact Charts”
The “Estimated Impact Presentation and Examples” PDF describes the past and present methods for determining the pensionability of flex credit. It also provides SEIU and VCDSA member scenarios under the old and new Flexible Benefits Program structures.
The “Estimated Impact Charts” PDF lists calculation factors used to estimate the reduction in a member’s retirement earnings and future monthly benefit. On page 3 of the PDF, Legacy members first need to identify their benefit tier and bargaining unit. The applicable row will show the estimated reduction in their retirement earnings and the estimated monthly benefit decrease per year of service. For example, a General Tier 2 Management employee who retires at age 50 with 20 years of service should multiply $11.39 by 20, resulting in an estimated monthly benefit reduction of $227.80.
Note: The Estimated Impact PDF below was updated as of 7/1/2023. As of that date, all County unions (but not the Courts) had adopted the County’s new Flexible Benefits Program structure. Members approaching retirement should contact VCERA to request a retirement benefit estimate rather than relying on information in these charts.
Legacy members can run their own benefit estimate using the Legacy Pension Calculator. To input an accurate Final Average Monthly Compensation amount in the “Compensation” field, members should find their Current Retirement Earnings Final amount on their paystubs, multiply it by 26 (to get an annual total), and then divide the total by 12 (to get a monthly average). The retirement earnings amount is expected to be accurate as of the 7/14/2023 paycheck.
As a VCERA member, death and survivor benefits may be payable to your surviving spouse, minor children, other eligible beneficiary or estate. The type and amount of benefits depend on many different factors and can only be determined after a full review of the decedent’s individual circumstances. Below is an overview of the death and survivor benefits that may be payable upon the death of a member.
Active Member Death
When an active member passes away, the benefits payable will depend on years of retirement service credit and whether the death was job-related or not job-related. Retirement law states that the rights and claims of a surviving spouse or minor children may supersede the rights and claims of another named beneficiary.
Nonservice-Connected Death
When an active member dies for reasons unrelated to employment (i.e., nonservice-connected), the benefits payable to a beneficiary depend on the member’s years of retirement service credit at the time of death. Benefits may include:
Lump-sum benefit: The “basic death benefit” consists of a one-time payment of the contributions and interest in the member’s VCERA account, plus one month’s salary for each completed year of retirement service credit, up to a maximum of six months’ salary. (Salary is based on the average monthly compensation over the last 12 months of employment. Service credit excludes prior public service purchases.)
A surviving spouse may be eligible to elect one of the following two options in lieu of the basic death benefit described above.
Monthly retirement benefit: If a member is vested in VCERA (i.e., having at least five years of eligible service credit, including reciprocal service), a surviving spouse may elect a monthly, lifetime retirement benefit equal to 60% of the monthly allowance the member would have been entitled to if he or she had retired with a nonservice-connected disability as of the date of death.
If there is no surviving spouse or partner, the monthly benefit may be payable to the member’s minor children until age 18 (continuing through age 21 if they remain unmarried and regularly enrolled as full-time students in an accredited school).
Combined benefit: If a surviving spouse is eligible for a monthly benefit, he or she may instead elect to receive a combined benefit consisting of a one-time payment equal to one month of salary for each completed year of the deceased member’s retirement service credit, up to a maximum of six months’ salary, plus the monthly benefit described above, reduced by the actuarial equivalent of the lump-sum payment.
Service-Connected Death
When an active member dies for reasons related to employment (i.e., service-connected), the benefits payable to a beneficiary do not depend on the member’s years of retirement service credit or age at the time of death.
A surviving spouse may elect a monthly retirement benefit, payable for life, equal to 100% of the benefit that the deceased member would have been entitled to if he or she had retired with a service-connected disability as of the date of death.
If a member is killed in the performance of duty or dies as a result of an accident or injury caused by external violence or physical force incurred in the performance of duty, a surviving spouse may be paid an additional monthly benefit for minor children until the age of 18 (continuing through age 21 if they remain unmarried and regularly enrolled as full-time students in an accredited school). An additional 25% of the basic retirement benefit is paid for one child, 40% for two children, or 50% for three or more children. The benefit may also be payable to the legal guardian of the member’s children.
If a safety member is killed in the performance of duty or dies as a result of an accident or injury caused by external violence or physical force incurred in the performance of duty, a surviving spouse will receive an additional one-time, lump-sum payment equal to 12 months of salary based on the deceased member’s monthly compensation at the time of death.
Retired Member Death
At the death of a retired member, there is a one-time benefit of $5,000 payable to the named beneficiary or estate. This benefit may be reduced for retirees with outgoing reciprocity and is not payable upon the death of a non-retiree receiving a monthly benefit or continuance benefit.
An eligible surviving spouse or minor children also may be eligible for a monthly benefit, payable for life, depending on the retirement option elected by the member at retirement. The following survivor benefits are based on an Unmodified Option election and the type of retirement applicable to the deceased member:
Service retirement or nonservice-connected disability retirement: An eligible spouse will receive a 60% continuance of a deceased member’s monthly benefit, payable for life. To be eligible, the spouse must have been (a) married to the member for one year prior to the retirement date or (b) at least age 55 and married to the member for two years prior to the date of death.
Service-connected disability retirement: An eligible spouse will receive a 100% continuance of a deceased member’s monthly benefit, payable for life. To be eligible, the surviving spouse must have been (a) married to the member prior to the retirement date or (b) at least age 55 and married to the member for two years prior to the date of death.
If there is no eligible spouse or partner, these “continuance” benefits may be payable to minor children until age 18 (continuing through age 21 if they remain unmarried and regularly enrolled as full-time students in an accredited school).
Deferred Member Death
When a deferred member dies, all accumulated VCERA contributions will be paid to the member’s designated beneficiary or estate. Under no circumstances will the deceased member’s spouse or other beneficiary receive a monthly benefit or continuance from VCERA.
If you elect to withdraw your retirement contributions, your VCERA membership immediately ends, as does your right to apply for a service, disability, deferred or reciprocal retirement. Therefore, please carefully consider all your options before deciding to withdraw your funds.
You can either refund or roll over your account balance into a qualified plan. Refundable contributions include the amounts you paid into VCERA, any employer-paid portion of employee contributions (if applicable), and the semiannual interest credited on those amounts.
Taxes
VCERA is required to withhold 20% of the taxable portion of any lump-sum distribution greater than $200 for federal tax purposes. The withholding will not apply if you roll over the taxable portion of the distribution to an IRA or qualified employer retirement plan willing to accept a rollover. For more information, download VCERA’s Special Tax Notice.
Disposition Form
To process your withdrawal request, you (and your spouse, if applicable) must sign a Disposition of Retirement Contributions Form and return it to VCERA before a refund of contributions will be issued. The disposition form is available in the VCERA office, but it will also be mailed to you within a few weeks of terminating employment.
If you do not make a written election on the form, you will be placed automatically in a deferred membership status and your contributions will remain on deposit with VCERA. However, you may withdraw your funds at any time by completing a disposition form.
The foregoing is not intended to be tax advice. Please consult a qualified tax professional for more information prior to requesting a withdrawal of your VCERA contributions.
On October 12, 2020, the VCERA Board of Retirement will be considering a matter of general interest and importance to VCERA members regarding the impact of the California Supreme Court Alameda decision on VCERA. You may have received an email containing two letters from the County on this topic.
On September 28th, the VCERA Board Chair appointed an ad hoc committee to address potential litigation over VCERA’s implementation of Alameda. That committee, as well as VCERA staff and fiduciary counsel will be meeting with the County and the unions and their respective counsels on Thursday, October 8th.
VCERA’s fiduciary counsel sent a letterto the counsels participating in the October 8th meeting, which addresses the various issues and objections raised by both the County and employee groups and their counsels in regard to VCERA’s proposed implementation of the Alameda ruling. We provide this letter to help answer questions you may have.
We recognize the impact this ruling and its implementation has on the VCERA membership, and we look forward to discussing these important issues with representatives of the County and employee groups. We welcome your virtual attendance at the scheduled public meeting of the Board of Retirement on October 12th, the agenda for which will be posted on the VCERA website at www.vcera.gov.
You may redeposit retirement contributions that you previously withdrew from an earlier period of membership in VCERA. To restore your forfeited retirement service credit, you must redeposit all previously withdrawn contributions plus the interest that would have accrued on those contributions had they remained on deposit since your date of withdrawal.
The retirement service purchased will be credited under the same benefit tier that applied to you during your previous period of membership. If you were placed in a different benefit tier upon reentering County or district service, then after your redeposit is complete, all your current service will convert to the same benefit tier that was in effect during the redeposited period of service.
For purposes of vesting and retirement eligibility, redeposited County/District service counts toward these VCERA milestones.
Click here to download a Service Credit Purchase Request form.
On September 29, 2022, Governor Newsom vetoed Assembly Bill 826, a bill sponsored by SEIU and the County of Ventura. Had it passed, AB 826 would have allowed, under specific conditions, Legacy members’ compensation for calculating their retirement benefits (“compensation earnable) to include a larger portion of their flexible benefit credit (the amount the employer credits toward medical and other tax qualified benefits for its employees each pay period.) This benefit has been referred to as “cafeteria plan allowance” or other similar terms, but in Ventura County, it is most frequently called “flex credit”.
Because AB 826 did not become law, the portion of flex credit that cannot be received in cash may not be included in Legacy members’ compensation for retirement purposes. NOTE: For PEPRA members (those who established membership after January 1, 2013), no portion of flex credit may be pensionable so the bill would have had no effect on PEPRA members.
AB 826 was originally introduced in the 2021 legislative session, and was amended to apply only to Ventura County, but went “inactive” for the remainder of that session. The bill was amended in the 2022 session to allow the non-cashable portion of flex credit to be pensionable for Legacy members who retired prior to 2026.
Background: The Alameda Decision The veto of AB 826 was the latest in a series of events following the 2020 landmark California Supreme Court Decision, commonly referred to as the Alameda Decision. While generally Alameda clarified the pensionability of pay items such as standby pay, termination pay and certain annual leave redemptions, it also addressed in-kind benefits not payable in cash directly to the member. The Supreme Court in Alameda ruled that retirement boards do not have, and never had, the discretion to include “in-kind benefits” (i.e., cannot be received in cash directly by a member) because they do not meet the definition of “compensation.”
So while the Alameda applied to public pension systems across the state, in Ventura County, the exclusion of in-kind benefits not receivable in cash had a larger impact because Ventura County’s full flexible benefit allowance had been treated as pensionable.
Flex credit is the annual dollar amount contributed by the County to the cafeteria/flexible benefits plan, and credited toward the medical premium deductions that correspond with the employee’s medical and qualified benefit choices. For most employees, this credit does not cover the cost of their premiums, though for some it may. If the flex credit amount exceeds the amount of deducted premium or qualified benefit cost, the employee receives the balance in cash. For employees who opt out of medical insurance altogether, such as when they are already covered on a spouse’s policy, they still cannot receive the entire flex credit amount in cash; the County mandates that an “opt out” fee be deducted from the employee’s flex credit so only the remaining balance is received in cash. The maximum any member could receive in cash is the “employee-only” flex credit minus the lessor of the opt out fee or the lowest priced healthcare plan.
To illustrate, below shows the maximum amount of flex credit that members covered under the County’s Management Resolution were/are provided, and what portion may be received in cash. (Amounts may vary based on bargaining unit.)
YEAR
Flex CreditAllowance
Opt-Out Fee(Non-cashable portion)
CashablePortion
2020
$447
$300.09
$146.91
2021
$472
$333.95
$138.05
2022
$497
$334.75
$162.25
Put simply, had AB 826 passed, it would have allowed VCERA Legacy members who retired on or before December 31, 2025, to include the entire flex credit allowance amount in their compensation used to calculate retirement benefits. So for 2022, in addition to the already-includable $162.25 portion, they would also have included the $334.75 portion. But given the veto of AB 826, only the cashable portion of flex credit is includable for Legacy members.
Next Steps Though the Alameda was issued in July 2020, the VCERA Board of Retirement has delayed excluding the non-cashable portion of flex credit for Legacy members, awaiting the outcome of AB 826. Now that the veto has occurred, the Board of Retirement will turn its attention back to implementation of that exclusion.
At its October 24, 2022, business meeting, the VCERA Board of Retirement voted 4-3 to delay the exclusion of the non-cashable portion of flex credit from compensation earnable for Legacy members, and to revisit the item at its first Business meeting in April of 2023.
