COUNTY OF LOS ANGELES
PENSION SAVINGS PLAN
PLAN BROCHURE
		GLORIA MOLINA		YVONNE BRATHWAITE BURKE
		Supervisor 1st District		Supervisor 2nd District
		ZEV YAROSLAVSKY		DON KNABE
		Supervisor 3rd District		Supervisor 4th District
MICHAEL D. ANTONOVICH
Supervisor 5th District
January 2001
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Table Of Contents
			Subject
			Plan Summary
			Introduction
			Q and A on Pension Savings Plan
			Participation
			Employee Contributions
			Voluntary Employee Contributions
			County Contribution
			Maximum Contribution
			Investment of the Trust Fund
			Trust Fund Allocation and Valuation
			Earnings
			Periodic Statements
			Distributions
			-Options When You Leave County Service Before Retirement
			-Options When You Retire
			-Points To Remember
			Tax Considerations
			Appeal Procedures
			Death
			Beneficiaries
			Account Transfers
			Plan Administration
County Of Los Angeles
Pension Savings Plan
Plan Summary
Participants of the Los Angeles County Pension Savings Plan are entitled to benefits upon retirement or termination from County Service.
Remember This Important Information
1.	You will be contributing 4.5% of your pay, and the County will be contributing an additional amount equal to 3% of your pay to this Plan. All contributions and earnings are yours when you leave County Service.
2.	You may contribute up to an additional 7% of your pay (for a total employee contribution of 11.5%).
3.	When you leave County employment, the total amount (less the mandatory 20% Federal Tax and 6% State Tax withholding) in your Pension Savings Plan account will be mailed to the address on your employment records as a single lump sum payment unless you choose another option. If you want to keep the funds in your account, or if you want the funds distributed to you in some other way, you must fill out the Distribution Election Form and have it received at the address given within 30 days of your last day of County employment.
4.	Lump sum Pension Savings Plan termination payments and statements will be sent 60 to 90 days after your last day of County employment.
5.	All funds contributed to this Plan will remain in the Plan until you leave County service, or become eligible and join the Los Angeles County Deferred Compensation and Thrift Plan (Horizons) as a permanent full time County Employee, or request a Plan to Plan transfer into your new employer=s 457 plan.
Introduction
Welcome to the County of Los Angeles Pension Savings Plan. Since January 1, 1992, the County of Los Angeles, in agreement with the Coalition of County Unions and SEIU Local 660, has been offering a retirement plan, the Pension Savings Plan (PSP), for those County employees who are not eligible to participate in the Los Angeles County Employees Retirement Association. This Plan helps you prepare for your retirement, and includes a County matching contribution. These funds will be there for your retirement, but, if you leave County service before retirement age, you may take your contribution, the County contribution and interest earned on your account as taxable cash when you leave.
This brochure gives you many of the details of the Pension Savings Plan, its benefits and answers to questions most often raised by participants of similar plans. The Plan document is Los Angeles County Code Section 5.19, et.seq.
Q & A On Pension Savings Plan
What Is The Pension Savings Plan?
The County of Los Angeles Pension Savings Plan is a retirement and investment plan for part-time, temporary and seasonal employees who are not eligible to participate in the retirement programs provided through the Los Angeles County Employees Retirement Association (LACERA).
This Plan is a nonqualified governmental deferred compensation defined contribution plan administered by the PSP Administrative Committee. Under the Plan, you will contribute part of your monthly pay through a before-tax payroll deduction (a minimum of 4.5% of compensation will be deducted, you may make an additional voluntary contribution of up to 7% of your pay). The County will make a contribution equal to 3% of your monthly compensation to your account.
A PSP account will be established in your name, where both your contributions and the County contributions will be placed and will receive earnings. The funds in your account are held for your benefit, and may be withdrawn at the time of your retirement, or upon your separation from County service.
Do I Have To Participate?
Yes. If you are a part-time, temporary, or seasonal County employee, participation is a condition of employment (Employee Notification of Los Angeles County Pension Savings Plan attached). In 1990 the United States Congress passed OBRA 1990 (The Federal Omnibus Budget Reconciliation Act of 1990). This Act requires that beginning January 1, 1992, all County employees not participating in a qualified retirement plan, such as LACERA, be placed in Social Security or another program meeting Federal requirements. The Los Angeles County Pension Savings Plan meets the Federal requirements to provide a retirement program for those County employees not covered by LACERA. In addition, PSP contributions are not taxed when they are deposited into your account. Finally, the County makes a contribution equal to 3% of your monthly pay which is placed in your PSP account and will receive earnings, all of which will belong to you when you leave County service.
My Pension Savings Plan Deductions Have Not Started. Can You Start Them For Me?
All enrollments/changes are generated by your Departmental Human Resources unit. You will need to contact your departmental personnel office to have them correct your records.
May I Contribute Additional Pay To The Pension Savings Plan?
Yes. You may put in up to an additional 7% of your monthly pay to the PSP. Please see "Voluntary Employee Contributions" on page 6
When Am I Going To Receive My Account Statements?
Statements are mailed to your home address, on file with your County departmental personnel office, twice a year in February and July of each year.
I Am Experiencing A Financial Hardship. Am I Allowed To Borrow Or Take My Monies Out Of My Pension Savings Plan?
No. The Pension Savings Plan does not have provisions for loans or hardship withdrawals. As long as you are currently working for the County as a part-time, temporary or seasonal employee, you may not withdraw your monies from your PSP account.
Can You Update My New Address In Your Records So I Can Receive My Statements?
Your departmental Human Resources office updates your address in the County payroll system. This will allow your statements to be mailed to your current address.
When Can I Withdraw The Pension Savings Plan Funds?
They can be withdrawn when you leave County service. Pension Savings Plan funds are intended to be used for your retirement. They cannot be withdrawn while you are working for the County.
What Happens To My Pension Savings Plan Account When I Leave County Employment?
When you leave County employment, you have four options for your Pension Savings Plan account.
1.	You can withdraw all the funds in your account as a lump sum payment. Unless you tell us otherwise Within 30 Days after the time you leave County service, we will assume that you have chosen this option. Your account will be closed and all the funds in the account will be sent to you at the address on your County employment records. Note: the funds are taxable in the year you receive them.
2.	If you have less than $3,500 in your account, but you think you will return to work for the County in the future, you can keep your Pension Savings Plan account for up to 24 months after you leave County service. Your account will continue to receive earnings. Remember, you must tell us if you want to choose this option within 30 days of leaving County service. When you return to County service, if eligible, you will resume contributions to your account. If you have not returned to County service within 24 months, we will close your account and send the money to you at your last mailing address on record on or about the 25th of the month
3.	If you have $3,500 or more in your account, you can keep the funds in your account until you retire or attain the age of 50, or a higher age not to exceed age 702. Your account will continue to receive earnings. Remember, you must tell us if you want to choose this option within 30 days of separation from service. Retirement distribution options are covered under ADistributions@ on page 8.
4.	If you go to work for an employer that has a similar plan (called a "457" plan), you can transfer your Pension Savings Plan account to your new employer=s plan, this permits you to continue to defer taxes on your account. Remember, you must tell us within 30 days if you want to choose this option.
5.	If you are over 50 years old you may take one of these options or one of the options under "Options When You Retire" on page 9.
	All Pension Savings Plan accounts held after termination will continue to be invested and receive earnings. However, it is extremely important that you keep the Plan Administrator advised of your current mailing address.
I Am A Permanent Employee Now. Can I Use My Pension Savings Plan Monies To Buy Back Time For LACERA Plan D?
No, your Pension Savings Plan monies cannot be transferred into a LACERA account while you are a County employee. As a permanent employee, you have two options. You may either keep your Pension Savings Plan or, after becoming a participant in the Deferred Compensation and Thrift Plan (Horizons), you may request a plan to plan transfer from the Pension Savings Plan to the Horizons Plan. You may call the third party administrator, Great-West Life at (800) 947-0845 to request a plan to plan transfer form.
I Am No Longer A County Employee. Can I Transfer My Monies Into An Individual Retirement Account (IRA)?
No, you are not allowed to transfer monies from the Pension Savings Plan, which is established under Internal Revenue Code Section 457 into an IRA, which is established under Internal Revenue Code Section 401 (k) plan because the two plans are incompatible under Federal Law.
When Will I Receive My Pension Savings Plan Check?
Your Pension Savings Plan check will be sent to your last known mailing address 60-90 days after your last day in County service.
Why Haven’t I Received My Check, It Has Been Over 90 Days Since I Left County Service?
We may not know if you are out of service. Pension Savings Plan checks are generated when County Wide Timekeeping and Payroll Personnel System records show your County termination date on file. Your departmental Human Resources office is responsible for inputting this information into the County system.
How Can I Get More Information And Forms?
To obtain additional forms, or for additional information please call the County Department of Human Resources, Pension Savings Plan Unit at (213) 738-2252
Participation
All part-time, seasonal and temporary employees who are not active or retired members of LACERA or the State Judges' retirement plan must participate in this Plan as a condition of employment.
Employee Contributions
Participants in the Pension Savings Plan will have a fixed employee contribution of 4.5% of compensation *. This contribution is deducted before taxes are taken, reducing your taxable income. This means you will not pay any tax on this money until it is withdrawn from your account. Because this deduction is taken before taxes, your take home pay will not be reduced by the full amount of your contribution, your withholding tax rate will determine the amount your net take home pay is reduced.
	*Compensation (pay) is the same as it is for Social Security-Old Age Survivors and Disability Insurance (OASDI). Briefly, this means that all of your cash compensation (base pay, overtime, bonuses, standby and callback pay) is subject to the contribution, up to the annual pay limit for OASDI.
Voluntary Employee Contributions
In addition to the required contribution of 4.5% of your pay, you may voluntarily put into the Plan up to an additional 7% of your compensation (Form Attached). You can change or stop the Voluntary portion of your contribution at any time by submitting the completed and signed PSP Voluntary Deferral Agreement Form, such change will be effective for pay earned from the first of the month following the month the request is received by the Plan and will be reflected on the pay receipt the month following.
County Contribution
The County contribution is 3% of the same compensation base used for your employee contribution. Remember, all funds contributed to this Plan will remain in the Plan until you leave County service, or become eligible and join the Horizons Plan as a permanent full time County Employee.
Maximum Contribution
The maximum amount that may be put into your PSP is $8,500 for Plan Year 2001. This maximum amount is the total of your Pension Savings Plan contributions, the County's contribution and any money you may be putting into any other deferred income plan. Controls have been established to automatically limit your Pension Savings Plan contributions to $8,500 in each calendar year. (NOTE: This $8,500 may increase if IRS Code retirement limits are increased in future years).
Investment of the Trust Fund
Effective January 1, 1999, Pension Savings Plan assets were placed in trust for the exclusive benefit of Plan participants and their beneficiaries as required by Section 457 of the Internal Revenue Code. Bank of New York Western Trust Company is the trustee of the Pension Savings Plan. The County of Los Angeles Pension Savings Plan Administrative Committee selected the SEI Stable Asset Fund to manage the Plan’s Stable Income Fund.
Trust Fund Allocation And Valuation
Contributions made to the Plan on behalf of a Participant shall be deposited and credited to the Participant=s Investment Account no later than the 15th business day of the month following the month in which the Participant=s contributions otherwise would have been payable to such Participant in cash.
Except as may otherwise be provided by the Plan Administrative Committee, the assets credited to each Participant=s Investment Account shall be allocated among the Investment Funds in accordance with the investment option chosen by the Plan Administrative Committee.
Earnings
Your account will receive earnings. Earnings will be posted to your account on the 30th day of each month.
Periodic Statements
You will receive periodic statements showing contributions, earnings, distributions and the total value of your account in February and July of each year.
Distributions
Options When You Leave County Service Before Retirement
When you leave County service before retirement, you have four options for your Pension Savings Plan account (Distribution Request Form attached):
1.	You can withdraw all the funds in your account as a single lump sum payment (less the mandatory 20% Federal Tax and 6% State Tax withholding). Unless you tell us otherwise within 30 days of your termination, we will assume that you have chosen this option. Your account will be closed and all the funds in the account will be sent to you at the address on your County employment records. The funds are taxable in the year in which you withdraw the funds.
2.	If you have less than $3,500 in your account, but you think you will come back to work for the County in the future, you can keep your Pension Savings Plan account for up to 24 months after you leave County service. Your account will continue to receive earnings. Remember you must tell us if you want to choose this option. When you return to County service, if eligible, you will resume contributions to your account. If you have not returned to County service after 24 months, we will close your account and send the funds to you at your last mailing address on record on or about the 25th of the month.*
3.	If you have $3,500 or more in your account, you can keep the funds in your account until you retire, or attain the age of 50, or a higher age not to exceed age 702. Your account will continue to receive earnings. Remember, you must tell us if you want to choose this option.*
4.	If you go to work for an employer that has a similar plan (called a "457" plan), you can transfer your Pension Savings Plan account to your new employer's plan, this permits you to continue to defer taxes on your account. Remember you must tell us if you want to choose this option. Generally, only governments and a few non-profit employers have a "457" plan.
*	If your Pension Savings Plan account is held open after you leave, it will continue to be invested and receive earnings. However, it is extremely important that you keep the Plan Administrator advised of your current mailing address.
Options When You Retire
The minimum retirement age is 50. The maximum age to begin distribution from the Plan is 702. You have the choice of taking the funds in your account at the time of your actual retirement, or any year thereafter up to the maximum age. When you are ready to retire, you will have several options for taking your Pension Savings Plan funds. You should request a "Benefit Payment Options" booklet (Document Request Form attached) which describes the rules and options in detail. You may also wish to consult with your financial or tax advisor to help determine the best option. Briefly stated:
1.	You may choose to take the full amount in your Pension Savings Plan account in one lump sum payment. The amount you receive is taxable in the year it is withdrawn.
2.	If you have $3,500 or more in your Pension Savings Plan account, you may choose to receive the funds in substantially equal payments over a period of years, such as 5 years, 7 years, 10 years, etc. but for not more than 15 years. The payments will be taxable in the years in which the money is withdrawn.
3.	If you have $3,500 or more in your Pension Savings Plan account, you may choose an annuity for your lifetime or a fixed number of years. If you choose the annuity through the Pension Savings Plan, the annuity payments you receive will be taxable in the years in which the money is withdrawn. Additionally there is a California tax on the purchase of an annuity that must be considered.
Points To Remember:
Because of Federal tax laws, once you choose the retirement option you want and begin receiving the funds, you cannot change your mind. If you have not begun receiving funds, you are allowed a one time change in the date you begin receiving funds from your account. This date must be a date later than your original date.
If you are working for the County at the time of your retirement, remember that you have 30 days from when you leave to notify us that you want to take a retirement distribution other than a lump sums payment. You don't have to decide in 30 days what type of retirement distribution you want, you just need to tell us so that we don't automatically close your account and send you all your money in a lump sum payment. If you are no longer employed by the County and have requested that your Pension Savings Plan funds be kept until your retirement, we will keep the funds until you notify us you are ready to withdraw them once you have reached the retirement age of 50.
Tax Considerations
Each participant and beneficiary will be mailed an Internal Revenue Service Form W-2 and Internal Revenue Service Form 1099-R, the January following his or her taxable event. (NOTE: Therefore, you need to keep your mailing address current with the County).
Appeal Procedures
Any participant or beneficiary who believes that he or she is entitled to receive a benefit under the Plan must mail a written request to the Plan staff at: 3333 Wilshire Blvd, 10th Floor, Los Angeles, CA 90010.
If a request is denied, the participant or beneficiary has a right to appeal the denial to the Plan Administrative Committee (PAC) by submitting a written request for review of such claim stating the specific facts supporting his or her claim and specifying the remedy sought. The appeal shall be reviewed by Plan staff of the PAC. If Plan staff determines that the request is valid, and within their authority to grant, benefits will be distributed as soon as administratively feasible. If, however, Plan staff cannot approve the request, such appeal shall be reviewed by the PAC at its next regularly scheduled (quarterly) meeting. The determination of the PAC as to the denial of a request on appeal shall be final and exhausts your administrative remedy.
Death
If you die before receiving any or all of your Pension Savings Plan funds, your account will be paid to your beneficiary. Your beneficiary will have the same distribution options shown under Distributions beginning on page 8.
Beneficiaries
Unless you tell us otherwise, your beneficiary will be your spouse. If you have no spouse, the beneficiaries will be your children by blood or adoption. If there is no spouse and no children, the beneficiary will be your estate.
Account Transfers
If your County employment status changes from temporary, part-time or seasonal employee to permanent, 3/4 time or more employee, you will become a member of the County's regular retirement system (LACERA), and both your contributions and the County contributions to the Pension Savings Plan will stop. You will then have two options:
--	If you want to continue to contribute to a tax-deferred account and receive a County matching contribution, you can join, and transfer all the money in your Pension Savings Plan account to the Los Angeles County Deferred Compensation & Thrift Plan (Horizons). You must contact Great-West Life at 1(800) 947-0845 to request an enrollment package for Horizons and to request a Plan to Plan Transfer Form; or
--	If you choose not to join Horizons, the funds will remain in your Pension Savings Plan account and continue to receive earnings until you separate from County service, retire, or choose to transfer your account to the Horizons Plan in the future.
If you leave your job with the County and become employed by another governmental employer, you may transfer your account balance to another eligible IRS Code, Section 457, deferred compensation plan (see Options When You Leave County Service Before Retirement - #4 page 8).
Plan Administration
The Plan will be administered by the Pension Savings Plan Administrative Committee, which consists of the County of Los Angeles Chief Administrative Officer, Auditor-Controller, County Counsel, Treasurer-Tax Collector, a representative from Local 660, SEIU, AFL-CIO, and a representative from the Coalition of County Unions. Each Plan Administrative Committee member may name an alternate. The Committee may delegate operational functions to an outside agency. The Committee will also establish policies and procedures to minimize administrative costs.

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