Reciprocity allows public employees to link service earned in more than one public retirement system without losing valuable retirement rights and benefits when changing employment. There is no transfer of funds or service credit between reciprocal retirement systems when an employee establishes reciprocity. The employee remains a member of both systems and is subject to each system’s membership and benefit obligations. Upon
retirement, each system pays a retirement allowance based on the years of service earned in each respective
system. The member must apply to retire from all reciprocal systems separately but must retire with the same effective date in each system in order to receive the advantages of reciprocity.

Reciprocal Agencies

KCERA has reciprocal agreements with 19 other California counties operating under the County Employees’ Retirement Law of 1937 (CERL); the California State Teachers’ Retirement System (CalSTRS); the California Public Employees’ Retirement System (CalPERS); and any other public retirement agency that has a reciprocal agreement with CalPERS (with the exception of the University of California Retirement Plan). Click here for a list of the 1937 ACT agencies and state agencies that you may have reciprocity with.

Rules of Reciprocity

To establish and maintain reciprocity, you must comply with the following rules. Violating any of them will break reciprocity, resulting in the loss of all reciprocal benefits.

• You must leave active membership in the first agency and enter active membership in the new agency within six months.
• You must complete a form requesting the establishment of reciprocity between the agencies.
• You cannot withdraw your contributions from any reciprocal agency.
• You must retire from all reciprocal agencies on the same date.

Benefits of Reciprocity

If you establish reciprocity between KCERA and an eligible retirement agency in California, you will be entitled to the following benefits:

• The age for determining your retirement contribution rate in the new agency will be the same as your entry age in the first agency. This could lower your contribution rate.
• The service credit earned in the first agency will contribute to meeting your vesting and retirement eligibilities in the new agency. This means you do not need to “start over” when transferring between agencies.
• The highest salary earned in any agency will be used by all agencies to determine your “final average compensation” when calculating your retirement benefits. This could significantly increase your benefit from the first agency.
• If you were a member of the first agency prior to 2013, you may be eligible for a non-PEPRA benefit tier in the new agency.

Establishing Reciprocity 

Entering Kern County Employment:  When you leave employment covered under another reciprocal retirement system and enter employment with Kern County or a participating Special District, you may also be eligible to establish reciprocity. It is important that you inform the employer from which you are terminating employment that you will be entering KCERA membership and wish to establish reciprocity. Once employed by a participating KCERA employer, you will be required to complete a Sworn Statement card. You must include your previous retirement system on the Sworn Statement card if you wish to establish reciprocity. Your previous retirement system will send an Inter-System Membership Advice to KCERA. Should they not provide it timely, KCERA will initiate the process. The Advice from the previous system will include your total years of service as well as your dates of membership and termination of employment and any service credit that you may have purchased in that system. Once KCERA receives this information and if it has been confirmed that you entered employment within six months of termination from the previous system, reciprocity will be established and KCERA will provide you with a letter of confirmation. The retirement tier you will be placed in with KCERA may not be the same tier that you were in with the incoming reciprocal system. Each system bases placement on a variety of factors. If you have questions in regard to your tier placement with KCERA, you may contact our office and speak with a Member Services Representative. 

Leaving Kern County Employment: When you leave emproyment with Kern County or a participating Special District, you are required to complete a Disposition of Retirement Contributions form. This form allows you to choose whether to take a refund of your contributions or leave them on deposit by either deferring your retirement or making a reciprocal election. To establish reciprocity, you must indicate on the form the name of the retirement system you will be entering. Once the completed Disposition form has been received by KCERA, we will send an Inter-System Membership Advice to your new retirement system. The Advice will include your total years of service with KCERA as well as your dates of membership and termination of employment and any service credit that you may have purchased. The new system will complete the Advice and return it to the KCERA office. If it has been confirmed that you entered employment within six months of termination from Kern County, reciprocity will be established and KCERA will provide you with a letter of confirmation. The retirement tier you will be placed in with the outgoing reciprocal system may not be the same tier that you were in with KCERA. Each system bases placement on a variety of factors. Consult with the reciprocal system you are entering for details on your tier placement in that plan. 

 

Please  contact the KCERA office for more information.