CEO to Depart ACERA for State Appointment in February
ACERA announced today that Vincent P. Brown will resign his position as Chief Executive Officer (CEO) effective February 27, 2015 to take up appointment as Deputy Treasurer, Administration, Finance, and Education Policy for the Treasurer of the State of California, John Chiang.
Mr. Brown has served as CEO since July 2011, coming from his prior position as CEO of Santa Barbara County Employees’ Retirement System (SBCERS) as well as a number of executive positions in California state government.
Last Chance to Enroll in or Change Healthcare Plans
ACERA’s annual Open Enrollment will conclude on November 30, 2014 for group healthcare plans and December 7 for individual Medicare plans through OneExchange. Enrollment forms for group plans that are mailed to ACERA must be postmarked by November 30, 2014.
Chief Counsel Hired to Head ACERA Legal Department
Joseph W. Fletcher has been recruited as ACERA’s Chief Counsel, and will begin work during November. As Chief Counsel, Mr. Fletcher reports directly to CEO Vincent P. Brown and serves as legal advisor to the Board of Retirement and ACERA Staff, and represents ACERA in civil cases, advises them in matters of civil law, and manages ACERA’s legal department.
Open Enrollment is the Month of November
Open Enrollment is your annual opportunity to consider your benefit needs and options and to make changes, if needed. ACERA’s Open Enrollment period is November 1 – November 30, 2014, and you can change your Kaiser Permanente or UnitedHealthcare medical plan and Delta Dental plan and add or drop medical, dental, and vision coverage for your eligible dependents. ACERA’s Open Enrollment for an individual medical plan through OneExchange is October 15 – December 7, 2014.
Safety Members Must Wait 90 Days Before Returning to Work After Retirement
In order to comply with IRS regulations, ACERA will be requiring that safety members wait at least 90 calendar days after retiring from ACERA before returning to work for any ACERA Participating Employer. This requirement will take effect June 1, 2014, which means that any member who wishes to retire prior to this commencement of this requirement will have to return to work on or before May 31, 2014.
Lump Sum Death Benefit Increased to $1000 Retroactively
Effective January 1, 2013, the Board of Retirement made a decision to eliminate the $4,250 non-vested portion of the former $5,000 Retired Member Lump Sum Death Benefit, thereby reducing the death benefit down to the $750 vested portion. In researching the accounts that the death benefit is paid out of, ACERA discovered that the Board of Retirement had adopted a section of code in 1992 approving a vested retiree death benefit of $1,000 to be funded by the SRBR as long as funds were available.
Exploring a Private Healthcare Exchange for Early Retirees
ACERA is exploring the option of providing medical care plans to early retirees (not eligible for Medicare) through a private health insurance exchange in order to control healthcare costs and offer plans in more service areas. Benefits facilitators in the exchange would help members enroll in an individual medical insurance/prescription plan and use their Monthly Medical Allowance to offset the cost of the plan if eligible.
Extend Health Changes Name to OneExchange
Extend Heath, ACERA’s private health insurance exchange for Medicare-eligible members, has changed its name. It is now called OneExchange. Participants should have received a notice in the mail announcing this change. OneExchange is only a change in name, and is not specifically accompanied by other changes. You can visit OneExchange on the web at:
IRS Determines That ACERA is a “Qualified” Retirement Plan
The U.S. Department of the Internal Revenue Service issued the Alameda County Employees’ Retirement Association (ACERA) a favorable tax determination letter on January 29, 2014. The favorable determination letter indicates that in the opinion of the IRS, ACERA satisfies the qualification requirements of Internal Revenue Code section 401(a) and is therefore is a qualified public retirement plan entitled to favorable tax treatment.
ACERA’s New Website Launches
We’ve totally redesigned our website, and we’re really proud of it.
We hope you find it more organized, user-friendly, and viewable on all types of devices. On the new site you can sign up to get ACERA news delivered directly to you, and enroll in one of our retirement planning seminars.
2013 ACERA Board Election Results
The Alameda County Employees’ Retirement Association held an election for three seats on the Board of Retirement from November 20 to December 18, 2013. Votes for the Board of Retirement election were counted on Thursday, December 19, 2013 at the Registrar of Voters (ROV) office for the following seats:
1099s Will Be Mailed in January
Members in retired status, as well as survivors of ACERA members, will receive their 1099s during January 2014. IRS Form 1099 is how ACERA reports retirement income. Members should use their 1099s to file their 2013 income taxes.
IRS Makes Service Credit Purchases Post-Tax
Prior to 2014, ACERA allowed members to purchase service credit through pre-tax payroll deductions for certain ineligible employment with our participating employers, as well as redeposit their contributions from prior memberships. For years, the IRS approved pre-tax service credit purchases through payroll deductions based upon the pre-tax provisions in Internal Revenue Code (section 414(h)(2)).
Pending Legislation AB 340: Amendments to California Codes Relating to County Employees’ Retirement
AB340 was withdrawn in September. For more information please see the news update, Governor Brown releases plan to reform public pensions.
Governor Releases Pension Reform Plan
The reforms proposed in Assembly Bill 340 (AB340) this summer (as previously reported by ACERA) were amended in September and then withdrawn entirely when the California State Legislature opted to convene a Joint Legislative Conference Committee on Public Employee Pensions in late October. The Committee, co-chaired by State Senator Gloria Negrete McLeod (D-Montclair) and South Bay Assemblyman Warren Furutani (also a Democrat), will hold its next public hearing on December 1 in Sacramento.