Members who voluntarily or involuntarily separate employment with any SBCERA participating employer have certain rights and options regarding their SBCERA account. The information below provides you with an overview of your options to help you decide what to do with your account.
Understanding Your Membership Status
Vested Members: If you have five (5) or more years of service credit, you are a vested member and you qualify for a lifetime retirement benefit. Your years of service credit include your SBCERA membership and any reciprocal service credit, if applicable. You can keep your contributions on deposit with SBCERA and defer your retirement until you meet the age and service requirements to retire.
Non-Vested Members: If you have less than five (5) years of SBCERA or reciprocal service credit, below are the options available to you when you terminate your employment with any participating SBCERA employer. If you do not complete the online form in mySBCERA, your account will automatically be Non-Vested On-Deposit.
Options Available to Vested Members Only
As a vested member, you can select any of the separation options when you terminate your employment from any participating SBCERA employer. If you do not complete the online form in mySBCERA, your account will automatically be put into Deferred Vested status.
Defer Retirement and Leave Your Contributions On-Deposit (Default).
Being vested allows you to defer your retirement. With this option, your contributions will remain on deposit with SBCERA. You will receive benefits when you service retire after meeting age and service requirements. More information about retirement eligibility and retirement options can be found at www.SBCERA.org/Planning-Your-Service-Retirement.
Options Available to Vested and Non-Vested Members
Leave Your Contributions On-Deposit
You may leave your funds on deposit with SBCERA and let them continue earning interest. Currently, the interest rate is based on the lesser of the six-month Treasury Bill (T-Bill) rate or the assumed investment earning rate.
Defer Your Retirement and Establish Reciprocity
Whether you are a Vested Member or Non-Vested Member, if you are working for another California public agency that has a reciprocal agreement with SBCERA or CalPERS, you have the option to defer your retirement and establish reciprocity.
Reciprocity links your employment service between two retirement systems that have a reciprocal agreement. Your employment with the other public agency must begin within six months of your termination date with the SBCERA employer. More information about reciprocity requirements can be found at www.SBCERA.org/Reciprocity.
Upon your retirement, you must submit separate applications to SBCERA and any reciprocal agency, indicating the same retirement effective date or reciprocity will be broken, and the associated reciprocal benefits relinquished. Your retirement date with SBCERA cannot be backdated.
Note: Breaking reciprocity may have significant consequences. It may affect your retirement eligibility, and you may be required to pay additional retirement contributions. Please contact SBCERA before making this decision.
Request to Refund or Rollover Your Contributions
Whether you are a Vested Member or Non-Vested Member, if you have refundable contributions, you have the right to a refund of the money in your account. You can request a refund of your account balance, or a rollover of your account balance to an IRA or an eligible employer plan. You can also rollover a partial amount to an IRA or an eligible employer plan and have the remaining funds paid to you directly.
Notes:
- If you have only non-refundable contributions, and are a Vested Member, your only option is deferred retirement and you may not request a refund.
- If you have both refundable and non-refundable contributions, you may request the refundable portion of your contributions. Please contact SBCERA to verify this option is available to you.
- To refund or roll over funds, you cannot be employed by any SBCERA participating employer in any capacity—including part-time, seasonal, extra help, reserve, or paid call.
- You may not request a refund if you are an active member of a reciprocal system or a member of JRS, JRS II, or STRS.
- It can take up to six to ten weeks from the date the completed form is received for your payment to be issued.
Please be advised that you waive all rights to retirement benefits, including SBCERA disability and reciprocal benefits when you receive a refund or roll over your refundable contributions.
Options Available to Members Entering a Judges’ Retirement System Plan or State Teachers Retirement System Defined Benefit Plan
If you are a member who has terminated services with a participating employer, and within six months thereafter enter membership with a Judges Retirement System plan (JRS or JRS II) or State Teachers’ Retirement System (STRS), you must elect deferred retirement, leaving your contributions on deposit. If you elect deferred retirement, you are eligible to receive the benefits of limited reciprocity between SBCERA and JRS, JRS II, or STRS.
Limited Reciprocity Requirements:
- Retire concurrently (on the same date) with SBCERA and JRS, JRS II, or STRS.
- Use of your final average compensation (FAC) with JRS, JRS II or STRS to calculate your benefit with SBCERA.
Please be advised that if you are a member of JRS, JRS II, or STRS, and you refund or rollover your contributions, you forfeit any benefits available to you under limited reciprocity, and you will not be able to redeposit your withdrawn contributions if you are not an active member of SBCERA.
Selecting Your Option
If you separate from employment with an SBCERA participating employer, we will send you a letter with your separation options that can be selected in mySBCERA, your online member portal. If you have not enrolled in mySBCERA, you can view our mySBCERA Quick Reference Guide – Active Members for step-by-step information on how to enroll.
Make sure to read all instructions and information before completing the online form. If you need further clarification, please contact us.