What is reciprocity?
Reciprocity is an arrangement that allows you to link your current retirement benefits with the new system you are joining.  It enables you to preserve and enhance your total system benefits.  Essentially, it gives you portability by allowing you to leave your retirement contributions on deposit, regardless of your length of service, and to take a deferred retirement.

What are the benefits of being in a reciprocal relationship?
Your contribution rate will be based on your age of entry into the first system, thereby giving you a rate advantage.  Also, the service credit earned in one system may be used to meet the minimum requirements for vesting and/or retirement eligibility in another system.  Lastly, your highest salary will be used by both systems to compute your benefit allowance.

How do I establish reciprocity?
You are eligible for reciprocal benefits if you change your active membership to or from SBCERA and another system that is covered under the 1937 Act, CalPERS or any agency that entered into a reciprocity agreement with CalPERS.  You must elect to establish reciprocity by informing both systems of your intention.  The time between leaving one retirement system and entering another must not exceed 180 days.  You must have a clear break in service from the old system before entering the new one.

How do I retire from reciprocal systems?
You must retire concurrently from both (or all) systems on the same date.  Please notify both agencies of your intended retirement date in order to start the retirement process.

Which systems are eligible for a reciprocal agreement?
SBCERA has reciprocal agreements with the other counties in California that are governed by the 1937 Act.  These counties include Alameda, Contra Costa, Fresno, Imperial, Kern, Los Angeles, Marin, Mendocino, Merced, Orange, Sacramento, San Diego, San Joaquin, San Mateo, Santa Barbara, Sonoma, Stanislaus, Tulare and Ventura.  Also, SBCERA has reciprocal agreements with the California Public Employees’ Retirement System (PERS), the California State Teachers’ Retirement System (CalSTRS) and other municipalities and special districts.  NOTE: The University of California Retirement System does not recognize reciprocity for SBCERA or any of the above-mentioned entities.

For More Information
Contact your Retirement Specialist at (909) 885-7980 or toll free at (877) 722-3720.  As always, we will be happy to help you understand your rights and responsibilities with regard to any aspect of your retirement benefits.

Printable version