Ventura Decision

The Ventura Decision, as it affects ACERA, redefined what cash paid benefits are included in your final compensation. Final compensation may include, in addition to your base salary, items such as pay differentials, on-call pay, and shift differentials. For a complete list of pay types included in your final compensation, contact the Retirement Office. Employee contributions for cash benefits are being deducted on a biweekly payroll basis and are included in determining your retirement benefit.

One of the biggest impacts the Ventura Decision has for members is in the inclusion of the cash value for vacation cash received (as a result of vacation sell back and/or vacation "cashed-out" due to termination/retirement.) in the final average salary calculation. Under the decision, only such amount as can be accrued in the final compensation period (Tier 1 - 12 months; Tier 2 - 36 months) is included in the calculation of final compensation. For example: Tier 1 members who receive cash for vacation (cash at termination or sell back) during the final average salary period (highest 12 months) are limited to a maximum benefit equal to their annual vacation accrual rate or actual cash received, whichever is less. Tier 2 members who receive cash for vacation (cash at termination or sell back) during the final average salary period (highest 36 months) are limited to a maximum benefit equal to their annual vacation accrual rate for each year of the final average salary period or actual cash received, whichever is less.

For example, suppose you are a Tier I member accruing vacation at a rate of 5 weeks per year. You have 8 weeks of unused vacation time at the time you retire. Although you receive cash for your 8 weeks of unused vacation, under County rules, ACERA will only include and average 5 weeks of vacation into your final average salary. You are only allowed to receive credit for vacation time you accrue in your final compensation period (which in this case is 1 year as a Tier I member).

For Deputy Sheriff classification only: This limit also applies to sick leave cash out for deputy sheriffs. Under the Ventura Decision cash compensation received for remaining sick leave shall be included averaged into the final salary calculation, up to a maximum equal to 13 days for Tier I members and 39 days for Tier II.

For further information regarding the Ventura Decision, and how it affects you, contact ACERA.

- Last Modified: 03 / 25 / 2004