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Retirement Overview

When You Retire

Once you become vested with at least eight years of continuous creditable service, you are eligible to receive a normal retirement benefit at age 62, or a reduced benefit as early as age 55.

Your benefit will be calculated using three formulas:

  1. Flat-Dollar formula;
  2. Targeted Replacement Ratio formula; and
  3. Prior Plan formula.

The formula that produces the highest benefit is the one that will be used. Because the required contribution from a LAGERS participant is less than that required from a non-LAGERS participant, the LAGERS participant will receive two-thirds of the non-LAGERS benefit.

Required Minimum Distribution Rule

As a vested member, you must begin receiving a required minimum distribution of your pension benefit on April 1 of the calendar year following the latter of the year in which you reach age 70 1/2, or the year in which you separate from service. If you have not applied for pension benefits prior to this deadline, the only option available to you will be a single life annuity with no survivor benefit.

Retirees Returning to Work

If you are retired and receiving a benefit from CERF, your benefit will be suspended if you are rehired in a full-time (1,000 hours or more), eligible position, and you will also be subject to making the required CERF contribution. A pension benefit will not be paid for the same month in which you returned to work. When you retire again, your pension will be based on your total years of creditable service provided that, in no event shall the participant's total creditable service, when added together for all service periods, exceed the maximum allowable. If you are rehired as a part-time employee, however, and work less than 1,000 hours in a calendar year, your pension will continue without interruption. You will not earn additional credit for the part-time service. If, as a parttime employee, you reach 1,000 hours in a calendar year, your benefit will be suspended and you will be enrolled in CERF the first of the month following the month in which you reach 1,000 hours.